The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its enforcement case against Gemini, a cryptocurrency exchange founded by Tyler and Cameron Winklevoss. This decision follows the complete recovery of assets by investors in Gemini’s lending program through the Genesis Global Capital bankruptcy process between May and June 2024.
The SEC and Gemini Space Station, the exchange’s current name, jointly filed a stipulation in federal court in Manhattan to dismiss the case. Gemini is a cryptocurrency exchange that allows users to buy, sell, and store digital assets. The company also offers various crypto-related services, including a lending program called Gemini Earn.
In 2023, the SEC had charged Genesis Global Capital and Gemini Trust Company with illegally selling securities to hundreds of thousands of investors through the Gemini Earn program. Customers loaned their crypto to Genesis and received interest in return. When Genesis froze customer accounts in November 2022, the total value of Gemini Earn assets was $940 million. The SEC stated that its decision to dismiss the case against Gemini does not reflect its position on any other case.
Gemini made a strong Nasdaq debut last year. The exchange is currently valued at $1.14 billion, according to data from LSEG. This move underlines increasing institutional adoption and renewed investor optimism for digital assets, in addition to a potential shift in the SEC’s regulatory approach under U.S. President Donald Trump.
