SEC, Gemini Aim to Settle Billion-Dollar Earn Case

- SEC and Gemini move toward settling unregistered securities allegations tied to Gemini Earn. - Settlement signals evolving enforcement landscape for crypto regulations. On September 15, 2025, Reuters reported that the U.S. Securities and Exchange Commission (SEC) and Gemini Trust reached a "resolution in principle" to settle a lawsuit over the Gemini Earn program. The lawsuit, filed by the SEC in January 2023, accused Gemini and Genesis Global Capital of offering unregistered securities to retail investors. Through the Gemini Earn program, which allowed users to loan cryptocurrency to Genesis for interest, the companies allegedly raised billions of dollars without the proper disclosures federal law requires. In a court filing with the U.S. District Court for the Southern District of New York, lawyers for both parties confirmed the tentative settlement. However, the SEC must still grant final approval, and as a result, the court has paused litigation. If the case remains unresolved by December 15, 2025, both sides must submit a status report. This settlement marks a pivotal moment in the crypto industry, reflecting the SEC's ongoing scrutiny of unregistered securities offerings. In addition, it follows a notable $21 million settlement in 2024 between the SEC and Genesis involving related claims. The timing is also significant as it coincides with Gemini’s recent Nasdaq IPO, further amplifying its importance. According to CoinMarketCap, as of 12:00 UTC on September 15, Ethereum (ETH) was trading at $1,654, up 1.8% in 24-hour volume.