The US Securities and Exchange Commission (SEC) and Gemini Trust Company have told a federal court they have reached a “resolution in principle” to settle a securities case linked to a 2023 complaint.
In a filing submitted on Monday in the US District Court for the Southern District of New York, both parties requested that all litigation in the civil case be put on hold indefinitely. The request is still “subject to review and approval” by the commission.
If the case is not resolved by 15 December, the parties have agreed to submit another status update.
Background of the Case
The SEC first brought the case in January 2023 against Gemini Trust and Genesis Global Capital. The regulator alleged that the two companies had carried out an “unregistered offer and sale of securities to US retail investors” from February 2021 to November 2022.
The case centred on Gemini’s Earn Program, in which investors transferred assets to Genesis with the expectation of receiving interest. According to the SEC, Gemini and Genesis raised “billions of dollars’ worth of crypto assets, principally from US retail investors,” without proper registration.
The regulator also argued that investors did not receive the information needed to make informed decisions. The January 2023 complaint stated that Gemini had made “selective and inadequate disclosures” instead of providing full details as required under federal securities laws.
Steps Towards Resolution
The “resolution in principle” comes after earlier steps to wind down the case. In 2024, Genesis reached a $21 million settlement with the SEC.
In February this year, the agency—then under acting SEC chair Mark Uyeda—also informed Gemini that it would not recommend further enforcement action in a separate investigation.
The latest agreement suggests both sides are moving closer to fully closing the long-running dispute.
