There was a remarkable development in the long -term legal process between the US Securities and the Stock Exchange Commission (SEC) and Gemini, which operates in the field of crypto currency. The parties, the case for a period of 60 days to take a joint application to the court. This request is interpreted as an important signal for the resolution of ongoing disputes through negotiation. The court’s decision may also affect the course of the regulatory approach in the crypto currency sector.
The parties sit at the negotiating table
With SEC and Gemini, the New York Southern Regional Federal Court demanded temporarily stopping the proceedings in a joint petition. As a justification, comprehensive negotiations to be carried out between the parties were shown. This application points out that both sides want to avoid the weary effects of the case process and mutually evaluate the solutions.
The basis of the case is based on the accusation of SEC’s Gemini of the unlicensed securities proposal with the product “Gemini Earn ında in January 2023. The SEC argued that the way this product evaluates users’ funds contradicts financial regulations. Gemini defended himself by claiming that the product did not fall within the scope of securities. This contention became even more complex due to the uncertainty of legal definitions in the crypto currency.
Change of reconciliation with Genesis changed balances
Genesis Global Capital, one of Gemini’s former business partners, went to reconciliation with the SEC, paying a $ 21 million penalty under the same case in March 2024. This development is seen as a turning point that can affect both the direction of the case process and the strategy of SEC’s strategy against other parties. Following this step taken by Genesis, Gemini’s possibility of going to a similar path came to the agenda.
The voltage between SEC and Gemini is not only between the two institutions. The process points to a larger picture of crypto currency regulations in the United States. Such cases are closely monitored as it may be a precedent in terms of future practices. The fact that the parties are in search of reconciliation may encourage other actors in the sector to look for similar ways.
The changing regulatory attitude of Sec of SEC draws attention
With the introduction of Mark Uyeda to the SEC President after the US President returned to office, some changes began to be observed in the institution’s attitude towards the crypto currency market. During the Uyuma period, steps were taken such as canceling or suspending some previous cases. These changes cause interpretations that the regulatory institution adopts a more pragmatic and open approach to negotiations.
Companies operating in the crypto money market carefully monitor this new approach. In particular, on the legal ground where uncertainties are dominant, the possibility of reshaping regulations may directly affect companies’ strategies. The case between SEC and Gemini has the potential to affect the future of not only two sides but also the whole sector in this respect.
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.
