Crypto exchange Gemini has reached a preliminary agreement with the U.S. Securities and Exchange Commission (SEC) that could bring an end to one of the most closely watched legal battles in recent years. The case revolves around the controversial Gemini Earn lending program, which involved hundreds of thousands of users and billions of dollars in crypto assets.

Preliminary Agreement in New York Court

According to filings in federal court in Manhattan, attorneys for both the SEC and Gemini stated they had reached an “agreement in principle” to fully resolve the dispute. Judge Edgardo Ramos has been asked to pause deadlines until December 15, while final documentation is completed.

Neither Gemini nor the SEC has yet issued a public statement. Reuters, which first reported the development on September 16, noted that the agreement marks a significant step toward closing the prolonged conflict.

How the Earn Dispute Began

The Gemini Earn program allowed customers to lend their crypto, including Bitcoin, to Genesis Global Capital in exchange for interest payments. Gemini collected fees of up to 4.29% from these transactions. At its peak, the program attracted hundreds of thousands of participants.

Trouble began in November 2022 when Genesis froze withdrawals following the collapse of FTX. By January 2023, Genesis filed for bankruptcy, leaving around $900 million in customer assets locked, affecting roughly 340,000 Gemini Earn users.

The SEC then sued both Gemini and Genesis, alleging they bypassed disclosure rules designed to protect investors. Genesis later paid a $21 million fine to settle without admitting wrongdoing, while Gemini continued to fight the allegations.

This preliminary settlement now signals Gemini may also be ready to close the case, though final terms remain subject to SEC approval.

IPO and Shifting Regulatory Climate

The news comes shortly after Gemini completed its initial public offering (IPO), raising $425 million at a valuation of $3.3 billion. Since then, shares have risen to $32.52, up 16% from the original offering price of $28.

The timing underscores Gemini’s effort to move beyond the Earn controversy while positioning itself as a publicly traded company. The broader regulatory climate has also shifted: since President Donald Trump took office in January 2025, the SEC has softened its oversight of the crypto sector, reflecting a wider policy shift that has benefited firms like Gemini.

A New Chapter for the Winklevoss Twins

For co-founders Tyler and Cameron Winklevoss, whose combined net worth is now estimated at $4.6 billion, a settlement could remove a major overhang at a pivotal moment. It would allow Gemini to focus on growth and strengthening its market position, now as a fully public exchange.

The preliminary settlement between Gemini and the SEC could symbolize not only the closure of one of the largest crypto disputes of the decade but also the beginning of a new era, where regulation and business move closer together.

#Gemini , #SEC , #crypto , #Regulation , #CryptoNews

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