SEC, Gemini Seek 60-Day Pause to Explore Lawsuit Resolution

The U.S. Securities and Exchange Commission (SEC) and Gemini Trust Co., founded by the Winklevoss twins, have jointly requested a 60-day pause in their ongoing legal battle concerning the Gemini Earn program, which allegedly offered unregistered securities. Filed in Manhattan federal court, this motion aims to explore a potential resolution to the case, which has been pending since the SEC's lawsuit in January 2023. The SEC previously accused Gemini of violating federal laws by allowing retail investors to lend crypto assets for interest payments, resulting in significant financial losses for customers after Genesis Global Capital, Gemini's partner, filed for bankruptcy. The pause in litigation is seen as a reflection of a broader shift in regulatory attitudes towards the crypto industry, particularly under the Trump administration. Although the specifics of any possible resolution remain undisclosed, both parties believe that a stay will conserve judicial resources. The SEC has recently dropped or settled multiple lawsuits against other crypto firms, indicating a potential easing of regulatory pressure on the sector.