The SEC and Gemini have announced an “agreement in principle” in the Earn case, which could be the final step after the $21 million settlement with Genesis.
Gemini and SEC Close to Settlement in Earn Case
The SEC and Gemini Trust Company told a New York federal court that they have reached an “agreement in principle” in the multi-year Earn case.
On Monday, the parties filed a joint status report, asking for a stay of all proceedings until the commission approves the settlement. If a final decision is not made by December 15, the parties have committed to filing a new report.
The substance of the case
The lawsuit against Gemini and Genesis Global Capital was filed back in January 2023. The SEC accused the companies of unregistered offers and sales of securities between February 2021 and November 2022. The case involved the Gemini Earn program, through which investors transferred assets to Genesis in exchange for the promise of interest.
The regulator alleged that the companies had collected billions of dollars from US retail investors while withholding much of the information from them.
In 2024, the SEC reached a $21 million settlement with Genesis, and the current agreement with Gemini could put an end to the case. At the same time, in February of this year, the commission had already stated that it would not recommend further action against Gemini in a separate investigation.
Political subtext
The Winklevoss brothers, the founders of Gemini, are known for their support for Donald Trump during his 2024 presidential campaign. They were present at the signing of the GENIUS Act on stablecoins and, according to media reports, influenced personnel decisions in the field of crypto market regulation.
Against the backdrop of these events, Gemini went public — last Friday, the company launched an IPO, raising about $425 million from the sale of 15.2 million shares.
