SEC to dismiss Winklevoss Twins’ Gemini Earn lawsuit

Core Viewpoint - The US Securities and Exchange Commission (SEC) will dismiss its lawsuit against crypto exchange Gemini, reflecting a more lenient regulatory approach under President Trump [1][2]. Group 1: SEC Actions and Legal Developments - The SEC cited the return of customer assets as the reason for dismissing the lawsuit against Gemini, which had been accused of offering unregistered securities through its Earn program [1]. - Since President Trump took office, the SEC has dropped several lawsuits against major crypto companies, including Coinbase, Binance, and Ripple [2][5]. - The SEC, under new chairman Paul Atkins, has established a Crypto Task Force to create new regulatory frameworks to support the crypto industry [6]. Group 2: Gemini's Financial Situation - Gemini froze withdrawals for Earn customers in 2022 after the collapse of FTX, which impacted many crypto firms due to their exposure to FTX [3]. - Through a bankruptcy process, Genesis was able to return approximately $2 billion in crypto customer funds, including those from Gemini Earn [3]. - Customers of Gemini Earn benefited as the value of the returned crypto assets increased significantly during the restructuring process [4]. Group 3: Industry Context and Regulatory Environment - The regulatory landscape for crypto has shifted, with President Trump advocating for the industry and implementing supportive measures, such as the Bitcoin Strategic Reserve and the Genius Act for stablecoin regulation [5]. - Gemini, now rebranded as Gemini Space Station, went public last year and is listed on the Nasdaq, although its shares closed over 3% lower recently [4].