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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 \u201cabsurd.\u201d<\/span><\/p>\n 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\u2019s case by submitting a comprehensive brief to oppose the SEC\u2019s claims on the Gemini Earn program.\u00a0<\/span><\/p>\n In the filing<\/span><\/a>, 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\u2019s argument hampers the exchange\u2019s ability to respond properly to the allegations put forward.\u00a0<\/span><\/p>\n In the Judicial presentation, the exchange urged the court to ignore the \u201cconvoluted analysis\u201d provided by the SEC. The exchange has instead advocated for direct questions which would determine if the cryptocurrency in question qualifies as a security.\u00a0<\/span><\/p>\n 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.\u00a0<\/span><\/p>\n The company\u2019s lawyer, Jack Baughman also publicly refuted the SEC\u2019s claims in a <\/span>Twitter post<\/span><\/a>, saying:<\/span><\/p>\n The SEC is floundering. They can\u2019t 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 \u2014 an argument absurd on its face.<\/span><\/p>\n<\/blockquote>\n 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\u2019s 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.\u00a0<\/span><\/p>\n At the beginning of February 2021, Genesis and Gemini initiated a partnership that would offer the Gemini Earn program<\/a> 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.\u00a0\u00a0<\/span><\/p>\nGemini Pushes Back Against SEC Lawsuit<\/h2>\n
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GUSD market cap at $361 million | Source: GUSD Market Capitalization on Tradingview.com<\/a><\/pre>\n
Background On The SEC Lawsuit<\/h2>\n