The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have reached a tentative settlement concerning the SEC’s allegations that Gemini’s Earn program constituted an unregistered securities offering. This development marks a significant step in the ongoing regulatory scrutiny of crypto lending platforms.
In a joint letter filed on September 15, 2025, in the U.S. District Court for the Southern District of New York, attorneys for both the SEC and Gemini indicated that the proposed settlement would “completely resolve” the lawsuit, pending approval by the SEC commissioners. The parties have requested until December 15 to finalize the necessary legal documentation, with all case deadlines paused in the interim.
The SEC’s initial complaint, filed in January 2023, alleged that Gemini and its partner, Genesis Global Capital, offered unregistered securities through the Gemini Earn program. This program allowed customers to lend their cryptocurrency assets to Genesis in exchange for interest payments. However, in November 2022, Genesis halted withdrawals due to insufficient liquidity, leaving approximately 340,000 investors unable to access around $900 million in crypto assets. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2023-7?utm_source=openai))
Genesis has since agreed to a $21 million civil penalty to settle the SEC’s charges, without admitting or denying the allegations. The settlement stipulates that the SEC will defer collecting the penalty until after the resolution of other claims in Genesis’s bankruptcy proceedings, including those from retail investors. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2024-37?utm_source=openai))
In a related development, Gemini reached a $50 million settlement with the New York Attorney General in June 2024. This agreement aimed to compensate customers affected by the Earn program and included Gemini’s commitment to cooperate in a $3 billion fraud case against its former partner, Genesis. ([axios.com](https://www.axios.com/2024/06/14/gemini-nyag-fraud-dcg-silbert-genesiss-moro?utm_source=openai))
These settlements underscore the SEC’s continued focus on enforcing securities laws within the cryptocurrency sector. SEC Chair Gary Gensler emphasized the importance of compliance, stating, “Crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law.” ([sec.gov](https://www.sec.gov/newsroom/press-releases/2023-7?utm_source=openai))
The proposed settlement between the SEC and Gemini reflects the regulator’s ongoing efforts to address compliance issues in the rapidly evolving crypto industry. As the December 15 deadline approaches, stakeholders will be closely monitoring the finalization of this agreement and its implications for the broader market.