Gemini and SEC Request 60-Day Pause to Discuss Possible Resolution

Highlights:

• SEC and Gemini have requested a stay in their lawsuit to discuss a possible resolution.
• The SEC has dropped cases against major companies after recent changes in the agency.
• The request does not specify what type of resolution the parties are discussing.

Crypto exchange Gemini and the Securities and Exchange Commission have filed a joint request to pause the ongoing suit over the Gemini Earn program. They filed a letter with the U.S. District Court for the Southern District of New York requesting that all case deadlines be stayed for 60 days. They stated that the delay would allow time to explore a possible resolution. The request emphasized that neither side would be negatively impacted by the pause. They also noted that resolving the matter outside of court could help conserve judicial resources.

UPDATE: 🚨 The SEC requests a 60-day delay in its case against Gemini Trust to explore a possible resolution.

The lawsuit, filed in 2023, alleges Gemini illegally raised billions through its Earn program with Genesis. pic.twitter.com/iPoodQ06Z3

— CoinRock Media (@coinrockmedia) April 2, 2025

The SEC sued Gemini and Genesis Global Capital for offering unregistered securities through the Gemini Earn program. Genesis, in turn, agreed to pay $21 million to settle its part of the case. However, the case against Gemini is still active. In the event the court allows for the request, the parties are to submit a joint status report 60 days after the start of the stay.

Previously, Gemini co-founder Cameron Winklevoss criticized the SEC about the financial burden put on it by legal proceedings. He said the agency’s actions resulted in high legal bills and lost productivity. The company has yet to comment on the latest request, and neither has the SEC yet to comment on what it could mean for Gemini going forward.

On Monday, the SEC informed our litigation counsel @JackBaughman27 that it has closed its investigation into @Gemini and will not be pursuing an enforcement action against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells… pic.twitter.com/dTjg9CJXVl

— Cameron Winklevoss (@cameron) February 26, 2025

SEC Ends More Crypto Cases in Recent Months

The request for a pause in the Gemini lawsuit comes as the SEC has withdrawn several cases against other crypto firms. Since February, the agency has dropped cases involving Coinbase, OpenSea, and Uniswap. The filing of these cases began under the previous administration, which used a more aggressive tactic against crypto-related businesses. However, recent decisions suggest the SEC’s stance is changing.

Furthermore, the SEC recently closed another case against Gemini that had been separate from the ongoing lawsuit. Cameron Winklevoss, co-founder of Gemini, expressed frustration with the costs associated with dealing with SEC enforcement actions. 

Meanwhile, other crypto companies, including Crypto.com and Immutable, have also said their inquiries have been closed. The agency has not offered clear explanations for why it has stopped or dismissed several cases.

What This Means for Gemini and Crypto Exchanges

The letter filed in court does not provide details about the type of resolution the SEC and Gemini are discussing. It is not clear whether the case will be settled or completely dismissed. The court will now decide whether to grant the 60-day pause, which could provide more time for negotiations.

At the same time, Gemini is reportedly working towards an initial public offering (IPO). The company has been preparing for this move and is making leadership changes. The Gemini Trust Company agreed in January to pay $5 million to settle a case with the Commodity Futures Trading Commission. The claims were that Gemini had made misleading statements about its operations.