SEC and Gemini Seek 60-Day Pause in Legal Battle Amid Settlement Talks

The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have jointly requested a 60-day pause in their ongoing legal dispute, indicating possible settlement discussions. The case, centered on Gemini’s Earn program, has been a focal point in the broader regulatory scrutiny of crypto lending services.

The SEC sued Gemini in early 2023, alleging that the Earn program constituted an unregistered securities offering. The program allowed users to lend their cryptocurrency in exchange for interest, a model the SEC claims violated securities laws. Gemini, however, has maintained that it operated within legal boundaries and has challenged the SEC’s enforcement approach.

By seeking a temporary suspension, both parties appear open to negotiating a resolution outside the courtroom. If granted, the pause would provide time for discussions that could lead to a settlement, potentially avoiding an extended legal battle.

This move comes as regulators continue to crack down on crypto firms offering yield-bearing products. The SEC has pursued similar cases against other platforms, reinforcing its stance that lending and interest-bearing crypto services fall under securities regulations.

For Gemini, a settlement could offer greater regulatory clarity and allow it to refocus on its business operations. For the SEC, resolving the case without prolonged litigation could set a precedent for future enforcement actions against similar crypto services.

As the court reviews the motion, market participants and legal experts will be watching closely for any signs of a potential agreement and its implications for the future of crypto lending in the U.S.