SEC, Gemini Request Two-Month Pause in Lawsuit as 'Potential Resolution' in the Works

A potential resolution could be coming soon in the long-running lawsuit between the U.S. Securities and Exchange Commission (SEC) and Gemini over the crypto company's Earn product.

The two submitted a joint request to the U.S. District Court for the Southern District of New York on Tuesday to consider a 60-day pause in the case as they consider a potential resolution.

Gemini was sued by the SEC in January 2023, alongside lender Genesis Global Capital, alleging their Gemini Earn product constituted an unregistered securities offering. In March 2024, Genesis finalized a $21 million settlement with its role in the program, resolving its side of the case.

Since President Donald Trump returned to office and appointed Mark Uyeda as acting SEC chair, the regulator has halted or dropped over a dozen crypto-related enforcement actions, citing a reassessment of how securities laws apply to digital assets.