SEC Dismisses Enforcement Action Against Gemini Trust Company

USA: SEC Dismisses Enforcement Action Against Gemini Trust Company

The U.S. Securities and Exchange Commission announced on January 23, 2026 that it has entered a joint stipulation to dismiss, with prejudice, its civil enforcement action against Gemini Trust Company, LLC, filed in the Southern District of New York under case No. 1:23‑cv‑00287.

Dismissal Details

According to the stipulation, the Commission exercised its discretion to terminate the case, citing Gemini’s “100 percent in‑kind return of Gemini Earn investors’ crypto assets” and settlements reached with state regulators concerning the Gemini Earn program.

Background of the Enforcement Action

The original complaint, filed on January 12, 2023, alleged that Gemini had failed to adequately disclose risks associated with its Earn product, which allowed investors to earn yields on cryptocurrency holdings. The SEC’s investigation focused on whether Gemini’s representations complied with federal securities laws.

SEC’s Position on Related Matters

While the action against Gemini Trust Company is being dismissed, the Commission noted that the decision “does not necessarily reflect the Commission’s position on any other case,” signaling that other investigations may continue independently.

Regulatory Context

The dismissal occurs amid broader scrutiny of crypto lending platforms by U.S. regulators, including the SEC, CFTC, and state securities authorities, each of which has pursued enforcement actions related to investor protection and disclosure requirements.

Availability of Documents

The joint stipulation, related releases, and the original SEC complaint are publicly accessible through the SEC’s website.

This report is based on information from U.S. Securities and Exchange Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.