Gemini Nears Settlement with SEC Over Crypto Lending Dispute

Gemini Trust Company and the U.S. Securities and Exchange Commission are finalizing a settlement to resolve a three-year legal battle over the Gemini Earn program. The SEC had alleged the crypto lending product constituted an unregistered securities offering.

The dispute stemmed from Genesis Global Capital's collapse in 2022, which locked up billions in customer funds. Regulators argued Gemini failed to provide proper disclosures about risks. The resolution follows Genesis' separate $21 million settlement and comes as Gemini prepares for a potential IPO.

Market observers view the case as a bellwether for how regulators will treat crypto lending products. The settlement signals a pragmatic approach under the SEC's current leadership, potentially creating clearer compliance pathways for crypto firms.