The US Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have jointly requested a 60-day stay in the ongoing lawsuit over Gemini’s Earn program, signaling potential settlement discussions.

In an April 1 letter addressed to Judge Edgardo Ramos of the US District Court for the Southern District of New York, attorneys representing both parties asked for a pause on all case deadlines to facilitate negotiations.

“In this case, the parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay,” the letter stated. The lawyers further argued that a stay would benefit the court and the public by conserving judicial resources.

The SEC initially sued Gemini and crypto lending firm Genesis Global Capital in January 2023, alleging they had offered unregistered securities through the Gemini Earn program. The case gained further attention as part of broader regulatory scrutiny on crypto lending services.

In March 2024, Genesis agreed to pay a $21 million settlement related to its role in the program. However, Gemini has continued to contest the charges, making the SEC’s latest move to pause proceedings particularly notable.‍

Potential Settlement Talks

The request to halt proceedings suggests that Gemini and the SEC may be engaging in settlement discussions similar to those that led to Genesis’ $21 million agreement. While no specific terms have been disclosed, a resolution could potentially involve a financial penalty, compliance measures, or other regulatory commitments from Gemini.

Legal experts say the request for a stay is not uncommon when parties believe a settlement is within reach. If granted, both sides would submit a joint status update within 60 days, outlining their progress or the need for further legal proceedings.

For now, both parties await the court’s response to their joint request, with a potential resolution looming on the horizon.