SEC Drops Enforcement Case Against Gemini, Winklevoss-Founded Crypto Exchange

In a significant development for the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) has dismissed its civil enforcement action against Gemini Trust Company, LLC—the exchange founded by Cameron and Tyler Winklevoss—with prejudice on January 23, 2026. The joint court filing in Manhattan ends a lawsuit filed in 2023.

The case centered on Gemini’s Earn program, a now-defunct crypto lending feature operated in partnership with Genesis Global Capital. The SEC alleged that Earn offered unregistered securities to investors. The program collapsed in late 2022 when Genesis froze withdrawals amid its bankruptcy, impacting approximately 340,000 users and nearly $900 million in assets.

The dismissal follows full in-kind repayments to Earn users through the Genesis bankruptcy process, restoring their original cryptocurrency holdings. No additional penalties were levied against Gemini in this resolution (Genesis separately settled with the SEC for $21 million in 2024).

Gemini and the Winklevoss twins have long stressed regulatory compliance and transparency. The resolution is viewed as a win for the exchange, potentially boosting investor confidence and highlighting the value of user restitution in regulatory outcomes.

Industry observers see this as part of a shifting SEC approach under recent leadership, focusing more on fraud and investor protection while dialing back certain registration-based crypto actions. It may offer a precedent for resolving similar legacy cases through cooperation and remediation.

While not a blanket endorsement of all crypto practices, the drop underscores the importance of compliance efforts and productive regulator engagement. Gemini continues operations, with the Earn chapter closed, amid ongoing calls for clearer U.S. crypto rules to support market growth.