SEC and Gemini request a 60-day stay in legal battle, exploring resolution options for Gemini Earn lawsuit - IcoHolder.

The U.S. Securities and Exchange Commission (SEC) and Gemini Trust have requested a 60-day stay in their ongoing legal battle to explore the possibility of resolving the case. The motion, filed on April 1 in the U.S. District Court for the Southern District of New York, asks for a pause on all court deadlines as discussions continue.

The lawsuit dates back to January 2023 when the SEC sued Gemini Trust and Genesis Global Capital, alleging they had raised billions through the Gemini Earn program without registering it as a securities offering. The legal action was part of the SEC’s broader crackdown on cryptocurrency firms as part of the Biden administration's push for stronger regulatory oversight.

Gemini had previously reached a separate settlement with New York regulators, agreeing to return $2.18 billion to customers affected by the program. However, the latest motion does not clarify whether the ongoing discussions could lead to a settlement, case dismissal, or other resolution. Instead, both the SEC and Gemini argue that halting the proceedings will serve the public interest and save judicial resources.

A joint status update from both parties is expected within 60 days if the court grants the stay request. The motion reflects the ongoing negotiations in a case that has highlighted the SEC’s increasing focus on cryptocurrency regulation.

The SEC's litigation against Gemini is one element of a wider crackdown on crypto companies under the leadership of former SEC Chair Gary Gensler. However, regulatory approaches have shifted under President Trump, with acting SEC Chair Mark Uyeda withdrawing legal actions against various crypto companies, including Robinhood, Uniswap, and OpenSea.

Industry players, including the Winklevoss twins—founders of Gemini—have been vocal proponents of a more crypto-friendly regulatory environment. Both donated the maximum allowed amount of $844,600 to Trump’s 2024 campaign, signaling their support for a shift in regulatory priorities.

Genesis, which managed funds for Gemini Earn users, reached a settlement in February 2024 by agreeing to pay a $21 million fine, resolving its part of the legal dispute.