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.

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.
The decision to invest $100 million of their own money into their exchange was reportedly due to difficulty finding outside investors.
The chief executive of Gemini is calling the U.S. Securities and Exchange Commission's (SEC) actions against the crypto exchange “counterproductive.”
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 move, which Gemini says requires Genesis to return all locked-up assets, sunsets the exchange's nearly two-year-old Gemini Earn program.
The leading crypto, Bitcoin, is up by nearly 12% in two weeks, whereas Ethereum is up by almost 20%.
Gemini went down today for less than an hour after announcing its lending partner was pausing withdrawals.
The terminations were indicated by company filings, and confirmed by a spokesman, who emphasized the elevation of local leadership.
The cryptocurrency exchange spent $120,000 on U.S. lobbying in the third and fourth quarters of 2021.