The U.S. Securities and Exchange Commission (SEC) formally abandoned its civil litigation against Gemini on Friday, dismissing the case "with prejudice." The designation prevents the agency from refiling the charges, effectively ending the multi-year legal standoff over the defunct Gemini Earn program.
This dismissal finalizes the "resolution in principle" first disclosed in filings to the Southern District of New York in September 2025. While the lending partner for the program, Genesis, settled for $21 million prior to its bankruptcy liquidation, Gemini chose to fight the allegations that the Earn product constituted an unregistered security.
The dismissal was the final condition precedent for Gemini’s public listing.
Clearing the Books for ‘GEMI’
The legal victory removes the primary overhang for Gemini’s capital markets ambitions. The exchange filed paperwork in September 2025 to list on the Nasdaq under the ticker GEMI, targeting a $2.2 billion valuation. Institutional investors had viewed the open SEC docket as a major risk factor; Friday’s dismissal eliminates that liability entirely.
Market reaction was muted but positive, with the dismissal widely priced in following the September settlement news. The Earn program, which was halted in November 2022, locked up nearly $900 million in customer assets during the contagion following the FTX collapse.
Institutional Context: The New Regime
This action underscores the enforcement pivot under the current SEC leadership. Since the administrative transition in early 2025, the agency has systematically closed legacy investigations into major exchanges, opting for settlement frameworks over prolonged litigation. For the Winklevoss twins, the dismissal validates their aggressive defense strategy, distinguishing Gemini from competitors who settled similar charges without securing the "with prejudice" guarantee.
