The Securities and Exchange Commission abruptly closed its case against cryptocurrency exchange Gemini on January 23, 2026, filing a joint stipulation to dismiss the civil enforcement action with prejudice. The agency justified the dismissal by citing the “100 percent in-kind return” of crypto assets to investors in the Gemini Earn program. Quite the turnaround after three years of legal battling.
The SEC originally sued Gemini in 2023, claiming the Earn product—which paid interest on crypto holdings through lending partner Genesis—constituted an unregistered securities offering. That lawsuit came after withdrawals from the program froze in 2022 following FTX’s spectacular collapse. Customers’ funds remained locked for a painful 18 months. Not exactly a vacation for investors.
In Litigation Release No. 26465, the SEC characterized the dismissal as an “exercise of discretion,” acknowledging settlements with state regulators including New York Attorney General Letitia James. The New York settlement in 2024 had already secured full asset returns for burned investors. The settlement reached with James was crucial in ensuring investors received 100% of assets loaned through the program. Proper compliance risks were finally addressed through these settlements, restoring trust in the platform’s operations.
The timing doesn’t seem coincidental. Gemini’s founders, twins Tyler and Cameron Winklevoss, donated to Donald Trump’s re-election campaign and backed Trump family business ventures. Gemini rebranded as Gemini Space Station and went public on Nasdaq last year. Now, under new SEC Chairman Paul Atkins, the regulatory landscape has shifted dramatically.
This dismissal isn’t an isolated incident. The SEC has dismissed, paused, or reduced penalties in over 60% of pending crypto lawsuits since the administration change. A new Crypto Task Force is developing friendlier regulatory frameworks. Cases against industry giants like Coinbase, Binance, and Ripple have seen similar treatment.
For Gemini, the dismissal caps a long saga that finally concluded when investors regained full access to their $940 million in assets through the bankruptcy process in 2025. The SEC emphasized this dismissal doesn’t reflect its position on other crypto cases—but the pattern speaks volumes. The crypto winter of enforcement is thawing fast.
