SEC, Gemini file joint motion to seek 'potential resolution' to crypto lawsuit

The U.S. Securities and Exchange Commission and crypto exchange Gemini filed a joint letter requesting a 60-day stay to explore a potential resolution to their legal dispute over Gemini Earn.

The letter, filed with the U.S. District Court for the Southern District of New York on Tuesday, asked the judge to delay "all deadlines" in the SEC's lawsuit against Gemini in January 2023. 

In the lawsuit, the securities regulator claimed that the exchange offered and sold unregistered securities via its crypto lending program, Gemini Earn, raising billions of dollars worth of crypto assets.

The joint letter came a month after Gemini co-founder Cameron Winklevoss announced that the SEC had informed the team it had closed its investigation into the exchange and would no longer pursue an enforcement action against the company.

This is part of a wave of the SEC's canceled lawsuits and paused investigations into crypto firms as the agency shifted to a more pro-crypto stance following President Trump's election. The SEC has withdrawn cases against Coinbase, OpenSea, Immutable and others.

Gemini co-founders Cameron and Tyler Winklevoss previously donated $2 million in bitcoin to support Trump's campaign last June, though it was later refunded for exceeding the donation limit.

Earlier in January, the Gemini Trust Company also agreed to pay $5 million to settle a case brought by the U.S. Commodity Futures Trading Commission over misleading statements.

While it moves to resolve its past legal troubles, Gemini is reportedly eyeing an initial public offering to potentially happen this year, according to Bloomberg. In the midst of IPO plans, the crypto exchange also appointed a new chief financial officer last month.

The Block has reached out to Gemini and the SEC for further comment.