Gemini and SEC Reach Settlement After Earn Incident Amid Crypto Enforcement Shift

Gemini is moving toward closing one of its biggest legal battles with the U.S. Securities and Exchange Commission (SEC). The dispute stems from the Gemini Earn incident in January 2023, when customer funds were frozen following the platform’s bankruptcy. Many investors were unable to access their assets, sparking a long legal fight.

According to a recent joint filing with U.S. District Judge Edgardo Ramos, Gemini and the SEC have reached “a resolution in principle” that would end the case, pending approval by the Commission. Both sides have asked for a December 15 deadline to submit final paperwork.

This resolution comes at a pivotal time for Gemini, which recently completed its IPO, raising $425 million and pushing its valuation to $3.3 billion. By settling with the SEC, the crypto exchange appears eager to resolve regulatory challenges while strengthening its position in the market.

However, the case isn’t entirely closed. Legal experts point out that similar disputes, such as Ripple’s battle with the SEC, lingered for months even after reaching preliminary agreements. Investors will likely watch closely to see if Gemini’s deal progresses smoothly.

The settlement also reflects a broader shift in U.S. crypto enforcement under President Trump’s administration. Federal agencies have been winding down several high-profile cases, including an earlier SEC investigation into Gemini. Co-founder Cameron Winklevoss has been vocal about frustrations with regulators, while reports suggest the twins have lobbied against certain federal appointments in the crypto space.

Although the new SEC agreement doesn’t directly tie to these political maneuvers, it underscores a trend: federal scrutiny of crypto firms appears to be softening. For Gemini, resolving the Earn dispute could mark a major step toward regaining customer trust and focusing on expansion in a rapidly evolving industry.