The SEC dismisses the lawsuit against Gemini, solidifying the pro-crypto shift in the United States.

The SEC has dismissed its lawsuit against Gemini as the United States moves towards harmonized crypto regulation with the CLARITY Act.

Under the chairmanship of Paul Atkins, the United States Securities and Exchange Commission has formalized the definitive withdrawal of its lawsuit against the Gemini platform, owned by the Winklevoss brothers, closing a chapter of tension that began in 2023. 

The recent decision by the securities agency is not an isolated event in the crypto ecosystem, but rather part of a new institutional vision led by Atkins, who seeks to replace enforcement-based regulation with a technical cooperation framework aligned with President Donald Trump's goals for the digital industry. This shift at the federal agency promises to further reduce legal uncertainty for companies in the sector and attract technology investment back to the country.

The legal battle over Gemini's Earn program is coming to an end.

The case, which pitted the US financial authority against Gemini for months, has reached its conclusion. The controversy revolved around the Earn yield program, developed in conjunction with Genesis Global Capital, which, after the latter's bankruptcy, left thousands of users without access to their funds. 

In early 2023, the accusation against the company for offering unregistered securities marked the beginning of a legal process that tested both Gemini's operational structure and the regulatory oversight of the crypto market.

However, after these months of dispute, the situation has taken a decisive turn. In a recent presentation before the Southern District Court of New York, The federal agency requested the definitive dismissal of the civil case.Industry analysts point out that this withdrawal is based on the recovery of 100% of the assets for the affected investors, which eliminated the main reasons for the demand that had been established in 2023.

Industry sources agree that the outcome of this case reflects progress in managing conflicts between digital asset platforms and regulatory bodies. Gemini played a key role by allocating up to $40 million to ensure the funds were fully refunded in kind. According to its representatives, the settlement meets consumer protection requirements, thus avoiding protracted litigation and allowing the company to regain market share. 

The SEC and CFTC chart a common course for defining digital assets

The recent dismissal of the Gemini case reflects a broader shift in the U.S. regulatory approach to the crypto market. Under Paul Atkins' leadership, the Securities and Exchange Commission (SEC) has opted to moderate its punitive stance and prioritize institutional efficiency. This shift is evident in the slowdown of several legal proceedings initiated against key players in the sector, including Uniswap. The agency's new strategy appears to be geared towards reducing friction between agencies and companies in favor of a more collaborative supervision.

In this context, the joint announcement made Thursday by the SEC and the Commodity Futures Commission (CFTC) represents a decisive step. Both entities convened a meeting to discuss coordinating their functions regarding digital assets. 

Paul Atkins and Michael Selig, president of the CFTC, will lead the meeting with the purpose of establish a more coherent operating framework to avoid duplication and jurisdictional conflicts. The goal is to develop a shared roadmap that clarifies the classification of crypto assets and provides greater certainty for market participants.

In short, this move reflects a stage of seeking a balance between regulation and development, in which regulatory clarity is emerging as the key to consolidating institutional trust in the crypto industry.

Towards a definitive legal framework with the CLARITY Act

As the US administration relaxes its administrative controls over the crypto sector, Congress is moving forward with key legislative debates. The industry is closely monitoring the development of the CLARITY Act, a bill that could deliver the legal clarity participants have been waiting for for over a decade. 

This bill, which could be passed by the end of this month, seeks to establish clear definitions of which assets should be considered commodities and which should be treated as financial securities, eliminating the gray areas that have led to subjective interpretations by regulatory agencies. By setting these rules of the game, the bill aims to foster local innovation and protect users through mandatory transparency standards for all platforms operating in the United States.

According to experts, the combination of a more responsive administration and modern legislation points to 2026 as the year of stabilization for the digital finance ecosystem. With the withdrawal of lawsuits and the pursuit of consensus among agencies, the market appears to be leaving behind the era of confrontation and entering a period of institutional maturity.