In a surprising shift that may redefine crypto regulation in the U.S., the Securities and Exchange Commission (SEC) and Gemini Trust have jointly requested a 60-day pause in their ongoing lawsuit over Gemini’s controversial Earn program.
Filed on April 1 in a Manhattan federal court, the motion would suspend all legal deadlines in the SEC’s case—initially launched in January 2023—giving both sides room “to explore a potential resolution.” While the filing stops short of confirming a settlement or dismissal, it’s a notable de-escalation in what had once been a high-profile enforcement clash.
For further background on how political dynamics reshape crypto regulation, see our previous article: When $1 Meets Crypto: Political Winds and Blockchain Battles.
🧾 Key Points:
- Joint Motion: The SEC and Gemini have filed to pause legal proceedings for 60 days to consider a possible resolution.
- The Case: The SEC accused Gemini of offering unregistered securities via its Earn program to retail investors.
- Ties to Genesis: Genesis, a partner in Earn, owed $900 million to roughly 340,000 users and paid a $21 million settlement in February 2024.
- SEC Under New Leadership: Under Acting Chair Mark Uyeda, enforcement has cooled. Recent dropped actions include Coinbase, Binance, Robinhood, Uniswap, and OpenSea.
- What’s Next: If granted, both parties will submit a joint status report at the end of the pause.
Billionaire Winklevoss twins may resolve lawsuit over Gemini Earn
🔍 Is the SEC Turning Pro-Crypto?
The SEC appears to be opting for dialogue rather than dragging crypto firms through prolonged legal fights. This pivot is hard to ignore.
Gone is the era of Gary Gensler, whose aggressive rhetoric framed crypto as the financial “Wild West.” The regulatory environment is shifting under new leadership, and President Trump is back in office. Uyeda’s SEC is quietly but deliberately reversing course—backing off enforcement and extending olive branches.
From Coinbase to Uniswap, firms that were once facing lawsuits now see cases dropped or quietly de-escalated. Gemini’s current legal reprieve could be the latest sign that the Commission is entering a new chapter where innovation isn’t instantly treated as criminal.
The End of the “Wild West” Narrative?
Is the SEC now seeing crypto not as chaos to be tamed but as a sector to engage with? If so, this could mark the twilight of the “Wild West” narrative.
For years, this framing provided legal cover for sweeping enforcement. But now, with the Gemini case hitting pause and talks of resolution on the table, that era may be coming to a close.
For a broader look at this development, Reuters reports that the SEC and the Winklevoss twins actively pursue resolution pathways, suggesting a desire to conserve resources and de-escalate tensions.
Final Thoughts
This legal pause could be a turning point not just for Gemini but for the entire U.S. crypto industry. If resolution replaces regulation through enforcement, a more mature and cooperative future may lie ahead.
Instead of silencing the pioneers, the SEC is beginning to understand the need to walk beside them.