Gemini Nears SEC Settlement to Resolve Years-Long Earn Program Case - Crypto Giant Finally Bites the Regulatory Bullet

Gemini's marathon SEC battle hits the finish line—regulatory reckoning arrives after years of Earn program scrutiny.

The Settlement Shuffle

Winklevoss twins' exchange finally dances with regulators instead of fighting them. No more legal limbo—just cold, hard settlement terms that'll make compliance officers breathe easier.

Earn Program Exodus

Remember those juicy yields? Turns out the SEC didn't. Years of regulatory wrangling culminate in what insiders call a 'necessary capitulation'—because nothing says 'innovation' like writing a check to the government.

Industry Implications

Another crypto player learns the oldest finance lesson: regulators always get their cut. Meanwhile, traditional banks still offering 0.01% savings accounts get to watch from the sidelines—with approval.

In brief

• SEC, Gemini signal settlement in principle to end years-long Earn program dispute.
• Case stems from unregistered securities claims tied to crypto lending product.
• Shift in SEC posture reflects lighter regulatory climate for crypto firms.

Gemini Nears Closure in Long-Running Case

The SEC and Gemini told a federal court they had reached what they called a resolution in principle. This step is meant to close a dispute that began in January 2023, when the regulator accused Gemini of offering unregistered securities. 

The case focused on Gemini Earn, a program launched in 2021 that let customers lend digital assets to Genesis Global Capital in return for interest of up to 7.4% a year.

In their filing, both sides confirmed the settlement WOULD end the litigation once it receives formal approval from the Commission. To allow time for the paperwork to be completed and reviewed, they asked the court to pause all deadlines. 

The filing also stated that if the agreement is not submitted by 15 December 2025, the parties must provide an update on progress and propose new dates.

The lawsuit covered both Gemini and Genesis Global Capital. The SEC alleged that from February 2021 through November 2022, the two firms offered and sold securities to retail investors without proper registration. Genesis resolved its part of the case in 2024 by agreeing to pay $21 million, while Gemini’s position has only now moved toward settlement through this resolution in principle.

A Different Regulatory Approach

The atmosphere has altered since TRUMP assumed office in January. The president has been vocal in his support for digital assets, signaling that the industry has an ally in the White House. His decision to place Paul Atkins, a longtime backer of the sector, at the helm of the SEC confirmed that direction.

Atkins has rolled out Project Crypto, an initiative aimed at updating how the agency regulates the digital asset sector. Alongside this, the SEC has stepped back from cases against other major players such as Coinbase, Binance, and Ripple. The withdrawal of those suits has been viewed as an indication of lighter pressure on the sector.

The combination of leadership change and policy adjustment has drawn attention to how quickly the regulatory landscape can pivot. With Atkins steering the Commission and Trump voicing his enthusiasm for the field, companies are now seeing opportunities that seemed out of reach only a short time ago.

Gemini’s Nasdaq Debut Amid Ongoing SEC Case

For Gemini, the timing of this settlement process coincides with another milestone. The firm recently entered the public market, completing its initial share sale and listing on Nasdaq. Reports indicated that the offering brought in roughly $425 million through the issue of 15.2 million shares.

At the same time, its founders, Cameron and Tyler Winklevoss, have remained close to President Trump. They provided financial support during his 2024 campaign and have continued to maintain ties with the WHITE House.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.