SEC Drops Gemini Earn Case, Marking Pivotal Moment in Crypto Enforcement
The U.S. Securities and Exchange Commission closed its case against Gemini Trust Company over the failed Gemini Earn program, filing a joint dismissal with prejudice in federal court. This ends one of the most consequential enforcement actions stemming from the 2022 crypto market collapse.
Gemini Earn, launched in February 2021, allowed users to earn yield by lending crypto assets to Genesis Global Capital. The SEC cited the full in-kind return of assets to customers as grounds for dismissal but warned the decision doesn’t signal softer enforcement on crypto lending products.
The resolution comes amid heightened scrutiny of yield-bearing crypto programs under the SEC’s current leadership. While Gemini founders Tyler and Cameron Winklevoss avoid further litigation, the agency emphasized this dismissal is case-specific and doesn’t reflect broader policy shifts.
