<div id="readability-page-1" class="page"><div>The U.S. Securities and Exchange Commission has formally ended its civil enforcement action against Gemini Trust Company over the Gemini Earn crypto lending program, filing a joint stipulation for dismissal with prejudice in the U.S. District Court for the Southern District of New York on Friday.The regulator cited the complete recovery of Gemini Earn investors as the primary factor in its decision. Through Genesis Global Capital's bankruptcy proceedings between May and June 2024, customers received a full return of their crypto assets in kind, according to the SEC's litigation release.&#34;The Commission's decision to seek dismissal of this action is 'in the exercise of its discretion,' and takes into account the '100 percent in-kind return of Gemini Earn investors' crypto assets,'&#34; the SEC stated, also noting that state and regulatory settlements involving Gemini factored into the decision.The dismissal with prejudice means the SEC cannot bring the same claims against Gemini again, effectively closing the book on one of the highest-profile crypto lending cases to emerge from the 2022 market collapse. Gemini did not immediately respond to a request for comment from The Block. A three-year legal battleThe SEC charged both Genesis and Gemini in January 2023, alleging that Gemini Earn constituted an unregistered securities offering. The program, which launched in February 2021 and offered up to 7.4% APY, froze in November 2022 when Genesis halted withdrawals amid the post-FTX credit crisis, locking roughly $940 million from 340,000 users.A federal judge denied motions to dismiss in March 2024, finding the SEC had &#34;plausibly alleged&#34; securities violations. But the path to Friday's dismissal was paved by investor recovery and a series of settlements: Genesis paid $21 million to the SEC, while Gemini paid $37 million to NYDFS and contributed $40 million to the bankruptcy to facilitate full customer recovery.The dismissal adds to a wave of SEC crypto enforcement retreats under Chairman Paul Atkins, who took over in April 2025. The agency has dropped cases against Coinbase, Kraken, Ripple, and others, though it emphasized that this decision &#34;does not necessarily reflect the Commission's position on any other case.&#34; Gemini and the SEC had reached a resolution in principle which was announced in September 2025. Under Chairman Atkins, the SEC has launched &#34;Project Crypto&#34; to modernize its digital asset rules, part of a broader shift from the enforcement-first approach of the Gensler era. The Winklevoss twins were notable financial supporters of President Trump's 2024 campaign and have maintained close ties to the administration, attending the signing of stablecoin legislation earlier this year.Gemini, now trading as GEMI after raising $425 million in a September 2025 IPO, is currently valued at approximately $1.14 billion. The dismissal awaits final sign-off from Judge Ramos.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</div></div>

The SEC has dismissed its lawsuit against Gemini Trust Company regarding the Gemini Earn crypto lending program after investors fully recovered their assets. The dismissal, filed in the U.S. District Court, prevents the SEC from bringing the same claims again. This case, which began in January 2023, involved allegations of unregistered securities offerings. The resolution follows settlements with Genesis and Gemini, contributing to the recovery of $940 million for 340,000 users. The dismissal reflects a shift in SEC's approach under Chairman Paul Atkins, who has been modernizing digital asset regulations.

- The U.S. Securities and Exchange Commission has dismissed its civil enforcement action against Gemini Trust Company related to the Gemini Earn crypto lending program, citing the full recovery of investor assets as the main reason.  
- Following bankruptcy proceedings for Genesis Global Capital, customers received a complete return of their crypto assets, leading to a joint stipulation for dismissal filed in the Southern District of New York.  
- This marks the closure of one of the notable crypto lending cases post the 2022 market collapse, with implications for the SEC's approach under Chairman Paul Atkins towards crypto regulations.

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SEC to dismiss Gemini Earn lawsuit with prejudice after full investor recovery, ending three-year battle