In brief
- The pair have asked Judge Edgardo Ramos to stay litigation until later this year while settlement paperwork is finalized.
- The case centers on whether Gemini Earn, a yield-bearing service tied to Genesis, constituted an unregistered securities offering.
- A final resolution could set precedent for how regulators treat crypto lending and yield products in the U.S.
Gemini and the U.S. Securities and Exchange Commission told a Manhattan federal court on Monday that they have reached a “resolution in principle” to end a high-profile enforcement action over the crypto exchange’s lending program.
The status report was filed as a letter to the Southern District of New York and asked Judge Edgardo Ramos to stay all deadlines until December 15 while the parties finalize the paperwork needed to complete the settlement.
The case has become a bellwether for how regulators handle yield-generating crypto products, which the SEC previously argued resembled securities contracts despite industry firms contending they are closer to traditional lending.
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Author: Vince Dioquino
