SEC Drops Lawsuit Against Gemini Following Asset Recovery
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Key Points: The U.S. SEC has dropped its lawsuit against Gemini. The decision follows a successful recovery of $900M in assets for Gemini users. Ongoing attention on compliance with laws governing yield-generating crypto products. The SEC has decided to dismiss its lawsuit against the cryptocurrency exchange Gemini after investors reclaimed 100% of assets through the Genesis bankruptcy process, citing improved investor outcomes. This decision may influence future regulatory approaches to digital assets, while reaffirming SEC’s stance on crypto yield products and investor protection in emerging markets. Market Reactions as Gemini Refocuses Post-Settlement The SEC’s lawsuit against Gemini centered around the sale of unregistered securities through its Earn product, in collaboration with Genesis Global Capital. Documents reveal the SEC’s decision to drop litigation after investors were made whole, a move applauded by market analysts. The SEC cited the complete asset recovery as the primary reason for termination in court documents. In response, the SEC hinted at continuous attention towards yield-generating products, highlighting potential issues with securities classification. “The recent collapse of crypto asset lending programs and the suspension of Genesis’ program underscore the critical need for platforms offering securities to retail investors to comply with the federal securities laws,” – Gurbir S. Grewal, Director of SEC’s Division of Enforcement Historical Context, Price Data, and Expert Analysis Did you know? This year marks the withdrawal of over a dozen cryptocurrency-related SEC lawsuits stemming from stalled lending programs within the crypto industry. Bitcoin (BTC), a key asset related to the Gemini Earn program, is trading at $89,487.33 per CoinMarketCap, with a market cap of $1.79 trillion, a 59.24% dominance, and a 24-hour volume of $37.29 billion. Recent price changes show minor fluctuations, with a 19.78% drop over 90 days. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 02:08 UTC on January 24, 2026. Source:…
Filed under: News - @ January 24, 2026 2:13 am