SEC Drops Civil Action Over Gemini’s Lending Program

The US Securities and Exchange Commission’s civil lawsuit against Gemini Trust Company and Genesis Global Capital in the Earn-related unregistered securities case has been dismissed with prejudice.

Court filings show the parties submitted a joint stipulation to dismiss the action on Friday in the US District Court in the Southern District of New York, effectively ending the SEC’s claim over Gemini’s crypto lending program with Genesis.

The SEC was content with the dismissal based on a 100% in-kind return of Gemini investors’ crypto assets through the Genesis bankruptcy case in mid-2024 and Gemini agreeing to contribute up to $40 million to help fund the return of all crypto assets to Gemini Earn investors.

The SEC was satisfied with the dismissal based on the 100% in-kind return of Gemini Earn investors’ crypto assets through the Genesis bankruptcy proceedings in mid-2024, which included Gemini contributing up to $40 million to help fund the full recovery of customer assets.

The SEC brought the case against the Winklevoss-led Gemini and Genesis in January 2023, during the Biden administration, when crypto-related lawsuits and investigations surged as part of a broader regulatory crackdown on the industry.

SEC continues to drop cases

Gemini’s case adds to a growing list of crypto cases that US government agencies have dropped since the Trump administration took over in January 2025, which has promised to deregulate the sector.

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Some of those cases include Binance, Kraken, Uniswap, Immutable, Robinhood, and most recently, the nonfungible token insider trading case involving OpenSea’s former manager, Nathaniel Chastain.

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This is a developing story, and further information will be added as it becomes available.