As stated in Gemini's court filing, "The fact that the SEC cannot decide what is the security at issue only underscores the weakness of its position."
Gemini has filed a reply brief in the court to dismiss the SEC’s ongoing lawsuit against the exchange.
Earlier in January, the SEC sued Gemini and Genesis on allegations of violating the Securities Act of 1933. Targeting Gemini’s Earn program, the regulatory body’s lawsuit accused the two firms of selling unregistered securities and bypassing risk disclosure requirements.
In its statement, Gemini claimed the SEC will need to identify unregistered security and confirm the sale of said security in order to make out its case. However, the regulatory body was unable to meet either requirement, with Gemini adding,
“In any event, even assuming for the sake of argument that SEC has somehow described a security (under either of its inconsistent theories), it has not plausibly alleged that such security was ever sold or offered for sale.”
Gemini is not the only exchange on the SEC’s radar. In fact, the US regulator has clamped down on multiple crypto exchanges, including Binance and Coinbase, over the past months.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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