Gemini and Genesis have asked a judge to dismiss an SEC lawsuit concerning its Earn product, according to developments on May 26.
Genesis says Earn wasn’t a security
Jack Baughman, a lawyer for Gemini, wrote:
“The SEC claims that the contract setting up the Earn program was itself a security. Even if that were right … the SEC would then have to show that the contract was sold. That never happened.”
Gemini offered Earn in partnership with Genesis Global Capital. This allowed users to earn interest on their crypto deposits as the providers re-invested those assets.
Gemini said in its latest filing that this offer “was nothing more than a lending arrangement.” Though the company raised numerous points, its main argument focused on the fact that the contracts were not sold on a secondary market.
It said that, as a result, the lending agreements it engaged in do not constitute securities. It asked the court to “dismiss the complaint with prejudice.”
Baughman noted that Genes
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