Gemini and SEC Near Settlement in Securities Case

Published: 2025-09-16 05:51:33 |

Gemini Trust Company and the US Securities and Exchange Commission (SEC) have filed a joint request for an indefinite stay in the Southern District of New York, signaling a “resolution in principle” in the long-running securities case. The SEC’s January 2023 complaint accused Gemini—and Genesis Global Capital—of offering unregistered securities through the Gemini Earn Program between February 2021 and November 2022, raising billions from US retail investors without required disclosures. Both parties agree to pause litigation pending SEC approval and will update the court by December 15 if no final agreement is reached. Meanwhile, Robinhood has filed a Form N-2 to register shares of its Robinhood Ventures Fund I on the New York Stock Exchange. Managed by Robinhood Ventures DE, the fund aims to give retail investors access to early-stage venture capital, targeting frontier sectors such as artificial intelligence, blockchain and Web3. Robinhood has expanded its crypto profile by adding trading, acquiring Bitstamp and purchasing WonderFi. The potential SEC-approved venture fund could broaden retail exposure to high-growth startups, while the near-settlement reduces regulatory uncertainty for Gemini, both key developments for crypto traders.

Neutral

The news is classified as neutral because, while a near-settlement between Gemini and the SEC reduces regulatory uncertainty and could positively influence confidence in Gemini-related products, the outcome remains conditional on SEC approval and a final agreement. Historically, partial resolutions tend to stabilize token price action without triggering major rallies. In parallel, Robinhood’s proposed venture fund broadens retail access to venture capital but does not directly impact mainstream crypto liquidity or pricing. Together, these developments clarify regulatory and product frameworks without delivering immediate catalysts for bullish or bearish market moves. Traders may see short-term relief in Gemini-linked assets and view Robinhood’s fund as a medium-term positive for retail involvement, keeping the overall market stance balanced.