Catenaa, Sunday, January 25, 2026- The US Securities and Exchange Commission has moved to dismiss its civil lawsuit against Gemini Trust Company over the Gemini Earn crypto lending program, ending a three-year enforcement battle after investors were made whole.
The regulator filed a joint stipulation for dismissal with prejudice in federal court in New York, permanently closing the case and barring the SEC from bringing the same claims again.
The agency said its decision followed the full recovery of Gemini Earn customers through Genesis Global Capital’s bankruptcy process.
According to court filings, Gemini Earn users received a complete return of their crypto assets in kind during distributions completed in mid-2024.
The SEC also considered prior settlements involving Gemini and other regulators in reaching its decision.
The case stemmed from charges filed in January 2023 against Gemini and Genesis, alleging the Earn program amounted to an unregistered securities offering.
Launched in 2021, the product allowed customers to lend crypto in exchange for yield.
Withdrawals were halted in November 2022 as market stress spread following the collapse of FTX, leaving about $940 million tied up across hundreds of thousands of accounts.
While a federal judge previously allowed the SEC’s claims to proceed, subsequent settlements reshaped the outcome.
Genesis agreed to pay $21 million to the SEC, while Gemini paid $37 million to New York state regulators and contributed additional funds to support customer recovery.
The dismissal reflects a broader pullback in crypto enforcement since Paul Atkins became SEC chair in 2025, as the agency shifts toward revising digital asset rules. The Gemini case now awaits final approval from the court.
