SEC and Gemini Hit Pause Button on Legal Battle: 60-Day Stay Requested

Breaking News: Legal Timeout in Crypto Showdown

Hold onto your hats, crypto fans! The U.S. Securities and Exchange Commission and Gemini Trust just threw a curveball in their high-stakes legal drama. They've asked for a 60-day stay in their ongoing lawsuit, hitting the pause button to explore a potential resolution. This bombshell was dropped on April 1 in the U.S. District Court for the Southern District of New York. They're asking the court to chill all deadlines while they hash things out behind closed doors.

The Backstory: SEC's Crypto Crackdown

Rewind to January 2023, when the SEC dropped the hammer on Gemini Trust and Genesis Global Capital. They accused these crypto heavyweights of raking in billions through the Gemini Earn program without registering it as a securities offering. It was part of the SEC's all-out war on crypto firms under the Biden administration's regulatory blitz. Gemini had already agreed to cough up $2.18 billion to affected customers in a separate deal with New York regulators.

What's Next? Settlement or Showdown?

The motion didn't spill the beans on whether these talks could lead to a settlement, dismissal, or some other twist, but both sides are arguing that hitting pause is in the public's best interest and saves the court's time. The SEC and Gemini have promised to give a joint status update within 60 days if the request gets the green light.

Regulatory Rollercoaster: From Gensler to Uyeda

Since President Donald Trump took the reins in January, it's been a wild ride for crypto regulation. The SEC, now led by acting Chair Mark Uyeda, has been pulling back on legal threats against big names like Robinhood, Uniswap, Immutable, and OpenSea. They've even dropped lawsuits against crypto giants Coinbase and Kraken. It's a 180-degree turn from the days of former SEC Chair Gary Gensler's iron fist.

Crypto Industry Cheers, Winklevoss Twins Bet Big

The crypto world is breathing a sigh of relief with this new, friendlier approach. The Winklevoss twins, the masterminds behind Gemini, have been all in for a more crypto-friendly regulatory scene. They each dropped a cool $844,600 on Trump's 2024 campaign. Meanwhile, Genesis, which had $900 million from 340,000 Gemini Earn customers before pulling the plug on withdrawals in November 2022, settled its part of the case in February 2024 with a $21 million fine.