NEW YORK, Jan 23, 2026 (GeokHub) — The U.S. Securities and Exchange Commission has agreed to dismiss its enforcement case against Gemini, the cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, after investors in its now-defunct lending program recovered their assets in full.
Court filings on Friday showed the SEC and Gemini Space Station jointly moved to dismiss the lawsuit in Manhattan federal court, citing the complete return of crypto assets to Gemini Earn customers through the Genesis Global Capital bankruptcy process between May and June 2024.
The case stemmed from allegations that Gemini and crypto lender Genesis illegally sold unregistered securities through the Gemini Earn program, which allowed customers to lend digital assets in exchange for interest payments. At its peak, the program held approximately $940 million in customer assets before Genesis froze withdrawals in November 2022 amid a broader crypto market collapse.
Unlike many crypto firms that failed during the 2022 downturn, Genesis ultimately returned customer assets in kind rather than liquidating holdings and repaying investors in cash, according to court documents.
“Following the 100% in-kind return of Gemini Earn investors’ crypto assets through the Genesis bankruptcy and related settlements, the Commission believes dismissal of the claims is appropriate,” the SEC said in its filing, while stressing that the decision does not set a precedent for other enforcement actions.
Gemini did not immediately respond to a request for comment.
Regulatory Shift Under Trump
The dismissal highlights a broader shift in U.S. crypto enforcement under President Donald Trump, who has pledged to position the United States as a global hub for digital assets and has described himself as the “crypto president.”
Regulators under the Trump administration have signaled a more accommodating stance toward the industry, favoring clearer rules and broader adoption over aggressive litigation.
Gemini, which made a strong Nasdaq debut last year, is currently valued at about $1.14 billion, according to LSEG data, reflecting renewed institutional interest in digital assets as regulatory uncertainty begins to ease.
