SEC Decides on “Resolution in Principle” for Gemini Earn Program

Core Points - The SEC has reached a "resolution in principle" with Gemini regarding the litigation involving the Gemini Earn program, which has been ongoing for two years [1][2][3] - The resolution is subject to approval by the SEC and aims to completely resolve the legal disputes stemming from the program [2][3] - The Gemini Earn program allowed customers to lend assets to Genesis, which later went bankrupt, leading to a halt in customer withdrawals and subsequent legal issues [4][5] Legal Context - A court filing indicated that both Gemini and the SEC have agreed on a resolution, pending review and approval by the Commission [2][3] - The SEC's involvement was triggered by claims that the Gemini Earn program violated Federal Securities laws by offering unregistered securities [5][6] - Both companies have argued that the SEC's claims lack substance and have sought to dismiss the lawsuit [6] Industry Implications - The SEC's current approach reflects a significant shift in its stance towards cryptocurrency firms over the past eight months, indicating a more lenient regulatory environment [7]