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SEC and Gemini Reach Settlement Agreement Over Unregistered Crypto Lending Program

SEC and Gemini Reach Settlement Agreement Over Unregistered Crypto Lending Program

Gemini and the SEC have reached a resolution in principle regarding the Gemini Earn program, with a settlement now awaiting final regulatory approval.

CORE

Summary

The U.S. SEC and Gemini have agreed in principle to settle a lawsuit over the Gemini Earn program, pending final approval. The settlement ends nearly two years of legal disputes stemming from allegations that the Earn program involved unregistered securities. Gemini’s position is improving, especially after the SEC eased its stance on crypto regulation. This settlement follows the company’s $425 million IPO, signaling a shift in regulatory dynamics.

Terms & Concepts
  • Crypto Lending Program: A service allowing users to lend digital assets to earn interest payments, facilitated by the platform.
  • Securities and Exchange Commission (SEC): The U.S. government agency responsible for regulating securities markets to ensure fair and orderly functioning.
  • Gemini Earn Program: A lending program by Gemini where customers could lend crypto assets to Genesis in exchange for interest, which was later deemed an unregistered securities offering.