The US Securities and Stock Exchange Commission (SEC) and the Gemini Crypto Asset Exchange, established by billionaire twins, launched the reconciliation process in the case opened due to the closed asset lending program. In this legal struggle, SEC’s Gemini EARN program reportedly continued the process with allegations about the assets received from investors.
Case Process and Claims
In January 2023, SEC suggested that Gemini and Crypto Asset Company Genesis Global Capital violated the laws of securities during the Earn program, which aims to bring interest to investors. These allegations came to the agenda in connection with the use of users’ crypto assets within the scope of the program.
After Genesis Global Capital stopped the shooting process for the user fund worth approximately $ 900 million in November 2022, the proceedings accelerated. After this development, SEC said that he had legal responsibility for Gemini’s program.
Parties’ demands
The parties demanded that the Southern New York Regional Court of Regional Court in order to allow negotiations for the solution of the process be frozen for 60 days. Thus, it was aimed to evaluate both sides on a possible compromise and to develop a clear solution strategy.
“The parties believe that while evaluating this issue, it will lead to the fact that no party’s rights will be damaged and the court resources will help to save the court resources.
The parties hope to reach a compromise after the interim process. In addition, the termination of some legal cases with Coinbase and Kraken, where SEC has a softer attitude towards crypto asset markets in the developing process.
In the general assessment, the positive progress of the case process can save time and resource for both parties. The compromise that may arise in the continuation of the legal process may contribute to the reduction of uncertainties in the market and the increase in investor confidence. In the light of these developments, it is important to follow the solution process in which the parties will step in the future for the relevant regulatory institutions and market participants.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
