Gemini Hits Back At SEC Lawsuit With Dismissal Filing
22 August 2023 - 3:00AM
NEWSBTC
Gemini, an American cryptocurrency exchange, has taken a stand
against the United States Securities and Exchange Commission (SEC),
deeming the lawsuit brought forth by the regulator as “absurd.”
Gemini Pushes Back Against SEC Lawsuit In the ongoing legal battle
between Gemini Exchange and the US SEC, co-founders Cameron
Winklevoss and Tyler Winklevoss have contested the validity of the
SEC’s case by submitting a comprehensive brief to oppose the SEC’s
claims on the Gemini Earn program. Related Reading: Experts
Explain Why SEC’s Interlocutory Appeal In Ripple Case Was A Mistake
In the filing, Gemini stated that the SEC had failed to establish a
clear definition of what the regulatory body regards as securities.
The exchange also highlighted the absence of well-defined
requirements for violating regulatory laws. As a result, the lack
of specification in the SEC’s argument hampers the exchange’s
ability to respond properly to the allegations put forward.
In the Judicial presentation, the exchange urged the court to
ignore the “convoluted analysis” provided by the SEC. The exchange
has instead advocated for direct questions which would determine if
the cryptocurrency in question qualifies as a security.
Gemini has also stated that the SEC should provide an
identification of the unregistered security and information on the
specific sale, highlighting that treating all cryptocurrencies as
unregistered security is prejudiced. The company’s lawyer,
Jack Baughman also publicly refuted the SEC’s claims in a Twitter
post, saying: The SEC is floundering. They can’t even decide what
the security is. On the one hand, they claim that the Loan
Agreement was a security. On the other hand, they claim that the
entire Gemini Earn program was itself a security — an argument
absurd on its face. GUSD market cap at $361 million | Source: GUSD
Market Capitalization on Tradingview.com Background On The SEC
Lawsuit Earlier this year, on January 13, the US SEC filed a
lawsuit against Gemini and Genesis, a crypto lender affiliated with
Gemini Trust Company. According to the SEC, Genesis loaned the
exchange’s users unregistered securities through the Gemini Earn
program, allowing the exchange and Genesis to accumulate billions
of dollars worth of crypto assets from thousands of
investors. Related Reading: Ethereum Whale Avoids Market
Crash, Do They Know Something You Don’t? At the beginning of
February 2021, Genesis and Gemini initiated a partnership that
would offer the Gemini Earn program to retail investors allowing
them to loan their crypto assets to Genesis, while the exchange
acts as a middleman. Genesis would then invest the crypto assets,
and pay users in interest. The SEC alleged that the
company, alongside Genesis, violated federal laws via the Gemini
Earn program by not registering its offerings and sales with the
Commission. The lawsuit was received with an unfavorable response
from the exchange’s legal team, which resulted in the dismissal
motion submitted on August 18. Featured image from Unsplash,
chart from Tradingview.com
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