On September 15, 2025, the U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini Space Station, led by Tyler and Cameron Winklevoss, filed a joint letter in Manhattan federal court announcing a settlement in principle over the SEC’s lawsuit concerning the unregistered Gemini Earn program. The program, launched in 2020, allowed retail investors to lend digital assets such as bitcoin and ether to Genesis Global Capital in exchange for interest yields, with Gemini collecting fees of up to 4.29%.
The SEC’s complaint, filed in January 2023, alleged that Gemini Earn constituted an offering of securities without proper registration or disclosure, thereby violating investor protection requirements. Genesis halted customer withdrawals in November 2022 amid liquidity strains and filed for Chapter 11 bankruptcy, leaving approximately $900 million of customer assets frozen. Gemini Earn served roughly 340,000 investors at the time.
The settlement letter requests that U.S. District Judge Edgardo Ramos place deadlines on hold and grant both parties until December 15 to finalize documentation. Once approved, the settlement will fully resolve the SEC’s claims without admission of wrongdoing by Gemini. Genesis previously settled with the SEC in 2023 for $21 million, also without admitting wrongdoing.
The settlement announcement came days after Gemini’s $425 million initial public offering valued the exchange at $3.3 billion. Gemini shares closed 16% above their $28 IPO price following the filing. The resolution with the SEC marks the agency’s enforcement approach under the Trump administration, signaling continued scrutiny of crypto lending and staking services deemed to fall within securities law.
The case underscores key regulatory considerations for crypto platforms offering financial services. Exchanges and decentralized finance platforms must assess whether their products qualify as securities under U.S. law and ensure compliance with registration and disclosure obligations. Market observers expect increased clarity once the SEC votes on the settlement and issues final approval.
With the settlement in principle, Gemini aims to move past litigation risk and focus on scaling operations under the SEC’s oversight framework. The outcome may shape future SEC enforcement priorities and influence how other platforms structure lending and yield-earning products in the crypto industry.
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