The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have filed a joint motion requesting a 60-day stay in the lawsuit involving the parties.
The recent move signals a potential shift in the regulatory landscape for cryptocurrencies in the U.S. The request, filed in the U.S. District Court for the Southern District of New York, seeks to explore a “potential resolution” in the two-year-old lawsuit involving Gemini’s cryptocurrency lending program, Gemini Earn. The parties have asked the judge to postpone “all deadlines” in the lawsuit, indicating a mutual interest in finding a negotiated solution.
“The parties to the above-referenced matter write jointly to respectfully request a 60-day stay of all time limits in this case to allow the parties to explore a possible resolution,” reads part of the document attached on April 1st.
In January 2023, the SEC charged cryptocurrency exchange Gemini with offering and selling unregistered securities through its Gemini Earn program. The regulator argued in the lawsuit that the company raised billions of dollars in crypto assets through the program.
It is worth noting that the joint motion between the parties comes shortly after Gemini co-founder Cameron Winklevoss announced that the regulator had officially closed its investigation into the exchange and would not take further enforcement action against the company. The search for a “potential resolution” between the SEC and Gemini may indicate an effort to find common ground and establish a clearer regulatory framework for cryptocurrencies in the country.
SEC Backs Off Gemini Exchange Investigation, but Winklevoss Demands Penalty
The United States SEC decided to close its investigation into Gemini, a cryptocurrency exchange founded by the Winklevoss brothers, in February without filing charges. The news, announced this week, marks a turning point in the relationship between the regulator and the crypto sector, especially since other investigations, such as those against Opensea, Robinhood and Uniswap, have also been closed.
Despite the apparent relief, Gemini co-founder Cameron Winklevoss was not celebrating. He called the decision late and insufficient, requiring those responsible at the SEC to pay a heavy price for years of pressure on the industry.