Gemini Nears Settlement with SEC Over Earn Program 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 accused Gemini and its partner Genesis Global Capital of offering unregistered securities through the crypto lending product.

The dispute centered on whether Gemini Earn's structure—where retail investors lent crypto to Genesis in exchange for interest—constituted a securities offering. The case gained significance after Genesis's 2022 collapse locked up billions in customer funds, testing the SEC's approach to regulating crypto lending.

Movement toward resolution follows Genesis's $21 million settlement earlier this year and signals from acting SEC chair Mark Uyeda that the agency wouldn't pursue additional actions against Gemini. The compromise avoids setting a potentially damaging precedent for crypto lending platforms while allowing regulators to claim enforcement credibility.