SEC to dismiss Winklevoss Twins’ Gemini Earn lawsuit

The US Securities and Exchange Commission said Friday that it will dismiss its lawsuit against crypto exchange Gemini, the latest company in the space to face a friendlier approach to enforcement from the regulator under US President Donald Trump.

In a Friday filing, the SEC cited the exchange returning customer assets as reason for the dismissal. The Wall Street watchdog in 2023 sued Gemini, alleging the exchange offered unregistered securities via its Earn program.

Gemini, founded by billionaire twins Tyler and ​Cameron Winklevoss, settled with the SEC in 2025. Gemini Earn customers received their assets via a bankruptcy process.

Gemini did not immediately respond to DL News’ request for comment.

The dismissal comes as the SEC and other regulators scrap a number of lawsuits against top crypto companies like Coinbase, Binance, and Ripple since President Trump took power.

Frozen funds

Gemini froze Earn customer withdrawals in 2022, following the collapse of crypto behemoth FTX. The Earn product paid clients interest on their crypto holdings via lending partner, Genesis.

Genesis had “locked funds” with crypto exchange FTX, which hurt top crypto firms that had exposure to the company following its bankruptcy.

But Genesis was able to return around $2 billion in crypto customer funds including Gemini Earn funds via a bankruptcy process.

Gemini Earn customers did well in the process as the price of the crypto they got back had gone up substantially in value since the restructuring process.

Exchange Gemini — now called Gemini Space Station — went public last year and is now listed on the Nasdaq. Shares of the exchange (NASDAQ: GEMI) on Friday closed more than 3% lower.

Friendlier approach

Gemini is one of many companies that have faced the SEC’s change in course with regards to crypto regulation.

President Trump campaigned on a ticket to help the crypto space and received backing from entrepreneurs in the industry.

Since taking office, he has introduced a Bitcoin Strategic Reserve, appointed crypto-friendly regulators, and signed crypto-friendly legislation like the Genius Act, which establishes a framework for regulating stablecoins.

The SEC under new chairman Paul Atkins created a Crypto Task Force to develop new regulatory frameworks aimed at helping the industry.

DL News reached out to the SEC for comment but did not immediately receive a response.

Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at mdisalvo@dlnews.com.