U.S. SEC seeks 60-day delay in Gemini Trust’s $900M lawsuit

The American Securities and Exchange and Gemini Trust commission jointly asked for a suspension of 60 days in their current trial to explore a potential resolution.

THE movementWho was submitted to the American district court for the South New York district on April 1, requests that the court postpones all deadlines while other discussions occur.

In January 2023, the SEC brought about its first trial against Gemini Trust and Genesis Global Capital, saying that they had illegally raised billions of dollars through the Gemini Earn program without recording it as a securities.

The trial was part of the broader repression of the SEC against cryptographic companies under the regulatory thrust of the Biden administration. Gemini had already accepted back $ 2.18 billion to customers concerned as part of a separate regulation with New York regulators.

The request does not specify whether the discussions could lead to a regulation, a dismissal or another resolution, but the two parties argue that the break of the case serves the public interest and retains legal resources. The dry and the Gemini will provide an update of the joint status within 60 days of approval of the request.

Since President Donald Trump took office in January, there has been a major change in the application of regulations. The dry, under the direction of the acting president Mark Uyeda, withdrawn Legal threats against Robinhood, Uniswap, Immutable and Opensea and have abandoned prosecution against major cryptocurrency companies like Coinbase and Kraken.

The change of approach was greeted by the actors of the cryptographic industry who previously made a strict application under the former president of the SEC, Gary Gensler. The Winklevoss twins, founders of Gemini, were also active supporters a more user -friendly regulatory environment.

They each donated the maximum authorized $ 844,600 to Trump’s 2024 campaign. Genesis, which managed $ 900 million, going from 340,000 Gemini, won customers before stopping withdrawals in November 2022, set its part of the case in February 2024 by accepting a fine of $ 21 million.