Court Denies Gemini and Genesis Motion in SEC Case Over Gemini Earn Program
Federal court denies Gemini and Genesis' motion to dismiss SEC case over Gemini Earn program, finding it offered securities under Howey and Reves tests.
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Federal court denies Gemini and Genesis' motion to dismiss SEC case over Gemini Earn program, finding it offered securities under Howey and Reves tests.
Earlier this year, regulatory authorities in the United States initiated legal action against Gemini and Genesis Global Capital, accusing them of engaging in the trading of unregistered securities via the Gemini Earn crypto asset lending initiative.
Gemini and Genesis are seeking the dismissal of a lawsuit filed in January by the Securities and Exchange Commission. The SEC accused the firms of the unregistered offer and sales of securities in the form of Gemini’s Earn lending program.
The company has submitted a pre-registration undertaking with regulators.
The decision to invest $100 million of their own money into their exchange was reportedly due to difficulty finding outside investors.
We’ve now passed the second full week of 2023 and crypto fans’ patience and resilience have been rewarded with the first big price leaps in a long time.
The beleaguered Gemini Earn program is now the linchpin in a new set of charges filed by the Securities and Exchange Commission against both Genesis and Gemini.
The leading crypto, Bitcoin, is up by nearly 12% in two weeks, whereas Ethereum is up by almost 20%.
The cryptocurrency exchange spent $120,000 on U.S. lobbying in the third and fourth quarters of 2021.