Gemini and SEC Reach ’Resolution in Principle’ in Landmark Crypto Lending Case

Gemini and the U.S. Securities and Exchange Commission have informed a Manhattan federal court of a preliminary settlement agreement regarding the crypto exchange's yield-bearing Earn program. The parties requested Judge Edgardo Ramos to pause litigation until December 15 while finalizing settlement documents.

The two-year-old case centers on whether Gemini's partnership with Genesis constituted an unregistered securities offering. This resolution could establish critical precedent for how U.S. regulators treat crypto lending products moving forward, potentially mandating disclosures and registration for similar yield-generating services.

The SEC's January 2023 enforcement action against Gemini became a bellwether case for the crypto industry's ongoing regulatory challenges. Market participants await the final settlement terms, which may reshape product structuring across digital asset platforms.