SEC and Gemini Seek 60-Day Pause in Crypto Lending Case

The Securities and Exchange Commission (SEC) and Gemini Trust have jointly filed a motion requesting a 60-day pause in their ongoing legal dispute over Gemini’s crypto lending program.

Submitted to a Manhattan federal court on April 1, the motion aims to suspend all deadlines in the SEC’s lawsuit against Gemini, originally filed in January 2023. The SEC had accused the Winklevoss-led exchange of failing to register its Gemini Earn program before offering it to retail investors.

According to the filing, the pause would allow both sides “to explore a potential resolution,” a move that attorneys argue “is in the Court's and the public's interest” as it would help “conserve judicial resources.” However, the motion does not specify whether the resolution could lead to a settlement, dismissal, or another outcome.

If granted, both parties will submit a joint status report at the end of the 60-day period.

A Shift in SEC’s Crypto Stance

The SEC’s request comes amid a broader shift in crypto enforcement actions since President Donald Trump took office in January.

Under former Chair Gary Gensler, the SEC had taken an aggressive approach, calling crypto markets the "Wild West" and launching multiple enforcement actions against major industry players. Genesis, which owed $900 million to roughly 340,000 Gemini Earn customers, agreed to pay a $21 million fine in February 2024 as part of its settlement.

Now, under acting Chair Mark Uyeda, the SEC has significantly softened its stance, dropping cases against Coinbase and Binance while also withdrawing legal threats against Robinhood, Uniswap, and OpenSea.

With regulatory pressure easing, the outcome of the Gemini case could signal further shifts in how the SEC approaches crypto firms moving forward.