US SEC, Gemini File Joint Motion to Pause Civil Legal Battle for 60 Days

Billionaire Winklevoss twins may soon resolve a civil case with the US SEC over its unregistered Gemini Earn lending program.

Gemini Trust and the Securities and Exchange Commission (SEC) have jointly filed a motion on Tuesday, requesting to push all deadlines in the case for 60 days. The time requested would allow the parties to “explore a potential resolution,” the SEC told a New York federal judge.

Gemini Earn promised high interest rates to investors who lent crypto assets to Genesis, a unit of Digital Currency Group. Gemini took fees that could exceed 4%.

Genesis Global had to freeze customer withdrawals in November 2022, before filing for Chapter 11 bankruptcy in January 2023. Over $1 billion was frozen when Genesis halted redemptions.

In January, Gemini agreed to pay $5 million to settle a case with the Commodity Futures Trading Commission (CFTC). The agency accused the exchange of misleading statements when trying to get their Bitcoin futures contract approved.

SEC, Gemini Agrees to Explore “Potential Resolution”

Per the motion, signed by attorneys from both sides, the parties sought to explore resolution that “is in the Court’s and the public’s interest.”

It also noted that resolving “would conserve judicial resources.” However, the motion did not specify whether the resolution would involve a settlement or dismissal.

“The parties respectfully request that the Court grant this joint request for a 60-day stay,” the motion read.

Further, the SEC and Gemini will provide a joint status update within 60 days of the request after approval.

Trump’s Administration Drops Several Enforcement Actions

In February, Gemini co-founder Cameron Winklevoss confirmed that the SEC had ended the investigation against the exchange without any charges.

Besides, Cameron Winklevoss stressed that the investigation alone cost Gemini “tens of millions of dollars in legal bills.” Further, he called for “thoughtful legislation” to protect the industry and accountability for those involved.

The SEC also dropped cases against Robinhood Crypto, Coinbase and Kraken, among few, that faced aggressive crypto enforcement actions under former head Gary Gensler.