Gemini Trust, operated by Tyler and Cameron Winklevoss, is in the process of potentially resolving a lawsuit brought by the U.S. Securities and Exchange Commission (SEC). The lawsuit alleges that the exchange failed to register a cryptocurrency lending program called Gemini Earn before making it available to retail investors.

In a joint filing in Manhattan federal court, both Gemini Trust and the SEC have requested a 60-day suspension of deadlines in the case to explore potential solutions. It is not clarified in the filing whether this may lead to a settlement, the SEC dropping the case, or another resolution.

The SEC’s lawsuit, filed in January 2023, involved Gemini Earn, a program that allowed customers to lend crypto assets to Genesis Global Capital in exchange for interest, with Gemini receiving a fee. Following Genesis’ suspension of withdrawals in November 2022 and subsequent bankruptcy, the SEC alleged that Genesis and Gemini had bypassed investor protection disclosure requirements when creating Gemini Earn.

Genesis Global Capital settled the charges in March 2024 by agreeing to pay a $21 million fine, subject to resolving its Chapter 11 case, while Gemini Trust has denied any wrongdoing.

Under the Trump administration, the SEC has shown a more lenient approach towards regulating the cryptocurrency industry. This stance is expected to continue under the current administration. Recent actions by the SEC include settling cases with major players like Coinbase, Kraken, and Ripple Labs over similar securities-related issues.

Forbes magazine estimates Tyler and Cameron Winklevoss’ net worth at $3 billion each. The lawsuit is identified as SEC v Gemini Trust Co et al, U.S. District Court, Southern District of New York, No. 23-00287.