- The SEC dismissed its lawsuit against Gemini because Earn program customers were repaid 100% of their crypto assets through bankruptcy proceedings.
- This dismissal follows a shift in SEC policy toward a less aggressive enforcement approach under new leadership following the 2025 transition.
- While Gemini recently went public and settled this specific case, the SEC stated this decision does not set a legal precedent for other pending crypto matters.
The Securities and Exchange Commission (SEC) agreed on Friday to drop its lawsuit against Gemini over the exchange’s Earn program, saying the case was no longer warranted. The lawsuit, filed in 2023 against Gemini and Genesis Global Capital, accused them of selling unregistered securities through a yield product that routed customer funds to Genesis.
In a joint court filing, the SEC and Gemini said Earn customers have now been repaid in full through Genesis’ bankruptcy process. A federal judge, Judge Ramos, still has to approve the dismissal.
The Commission’s decision to seek dismissal of this action is ‘in the exercise of its discretion,’ and takes into account the ‘100 percent in-kind return of Gemini Earn investors’ crypto assets,’ as well as state and regulatory settlements involving Gemini related to the Gemini Earn program
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Dismissal Permanently Closes Case
The case had already been paused in April last year after Mark Uyeda became acting SEC chair. The decision adds to a broader pullback in crypto enforcement under SEC Chair Paul Atkins, who took over in April 2025.
The agency has also dropped cases against firms including Coinbase, Kraken and Ripple, while saying the Gemini decision does not set a precedent for other matters.
Back in September 2025, Gemini said it had reached a resolution in principle with the SEC, and since then, notably, the agency launched Project Crypto to update its digital-asset rules, moving away from the enforcement-heavy approach associated with the prior chair, Gary Gensler.
Gemini went public in September 2025, raising US$425 million (AU$650 million). The company trades under the ticker GEMI and is valued at about US$1.14 billion (AU$1.74 billion), as Crypto News Australia reported.
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