Gemini Trust and the U.S. Securities and Exchange Commission (SEC) have reached a settlement in their long-standing dispute over the Gemini Earn lending product. The resolution comes nearly three years after the SEC initially filed a complaint alleging regulatory violations related to the program.
According to official statements, both parties have agreed to the terms of a potential deal, though specific financial or operational details remain undisclosed. The settlement marks a significant milestone in the regulatory oversight of cryptocurrency lending services, which have faced increased scrutiny from U.S. authorities in recent years.
The Gemini Earn program, which allowed users to lend digital assets in exchange for interest returns, was at the center of the SEC’s enforcement action. The regulator had raised concerns about whether the product constituted an unregistered securities offering under federal law.
This development represents one of the first major resolutions between a prominent cryptocurrency exchange and U.S. securities regulators concerning lending products. The outcome may establish important precedents for how similar crypto financial services are regulated moving forward, potentially influencing ongoing discussions about digital asset compliance frameworks.
