Federal regulators drop lawsuit against cryptocurrency exchange Gemini.
In a court filing Friday (January 23), Securities and Exchange Commission (SEC) has asked a judge to dismiss the lawsuit, stemming from the collapse of an investment product known as Gemini Earn.
The SEC argued that Gemini had settled a Trial 2023 brought by the State of New York, which accused the company of defrauding investors. Gemini has since moved to New York, with investors receiving “one hundred percent of crypto assets they had lent in kind to Gemini through the Gemini Earn program.
The SEC’s request is the latest in a series of actions the commission has taken to go back previous actions against the crypto industry filed under President Joe Biden.
Gemini, led by billionaire twin brothers Cameron and Tyler Winklevoss, announced plans to go public last year in an effort to raise $316.7 million. The company said at the time that it planned to market 16.7 million shares for $17 to $19 each in its initial public offering (IPO), giving it a market value of just over $2.2 billion.
More recently, Gemini Titan, a subsidiary of Gemini, made its prediction market platform available to customers in the United States. The launch of the Gemini Predictions platform came a week after the company obtained a Designated Market License (DCM) from the Commodity Futures Trading Commission (CFTC).
Advertisement: Scroll to continue
In other crypto-related news, PYMNTS wrote last week about the payment hurdles present in payment execution. blockchain finance more mainstream.
“Stablecoins can move seamlessly on-chain, but convert them into something usable in the real economy continues to be a difficult process,” the report states. “Collection remains expensive, slow and dependent on banking relationships which are often fragile or subject to jurisdictional constraints. This is the gap that a new generation of startups is working to fill.
Among them is Pomelowhich recently raised $55 million to help it launch a stablecoin linked card. Instead of asking consumers or merchants to change their behavior, companies like this are integrating crypto into familiar payment formats.
“In the same way, WalletConnect Pay push to scale encrypted payments at checkout reflects a broader recognition that technical capability is not a limiting factor,” the report continues. “User experience is. Cryptocurrency will not replace cards or real-time payments unless it can disappear behind interfaces as transparent as those that already exist.
