* The SEC just dropped its 3-year long case against Gemini, as per the latest crypto news.
* It also pointed to the fact that investors have now been fully repaid, which weighed heavily in the outcome.
* Based on that outcome, and using its discretion, the SEC said dismissing the claims against Gemini was appropriate.
As per the latest crypto news, the U.S. Securities and Exchange Commission just dropped its 3-year long case against Gemini.
The legal dispute, dating as far back as 2022, was a result of that year’s crypto market turmoil when prices crashed, and regulators quickly stepped in.
According to the report, investors have recovered their money in full, closing out a dispute that once symbolized the industry’s deepest downturn.
Crypto News: SEC Agrees to Drop Gemini Case, Full Refunds Confirmed
The Crypto news section by Reuters reported that the U.S. SEC dropped its long-running lawsuit against Gemini.
According to the report, the SEC made the call on Friday and announced it was closing the class-action lawsuit against Gemini’s Earn product. The SEC said it no longer sees a need to keep the lawsuit going.
In a court filing dated January 23, 2026, the SEC and Gemini Trust Company agreed to end the case for good.
The SEC said it reached that decision based on its own assessment. It also pointed to the fact that investors have now been fully repaid, which weighed heavily in the outcome.
Gemini said customers who used its Earn program have now recovered all of their crypto.
The exchange explained that the repayment came through the Genesis Global Capital bankruptcy process, which ran from May to June 2024. As a result, the filing said the SEC had determined the case was no longer worth pursuing.
The regulator added that investors received a full in-kind return of their crypto through the Genesis bankruptcy and related settlements. Based on that outcome and in its discretion, the SEC said that dismissing the claims against Gemini was appropriate.
The timing of the SEC’s move also stands out because Gemini has been hitting fresh milestones.
Most recently, Gemini secured approval from the CFTC to roll out its own prediction markets. That step matters because several major crypto exchanges are now chasing the same opportunity, hoping to expand beyond spot trading into new, high-demand products.
SEC Took Gemini to Court in 2023 Over Alleged Securities Violations in Earn
In 2023, the SEC sued Gemini, arguing that the exchange sold securities illegally through its crypto lending business.
The regulator said the issue centered on Gemini Earn. Under that program, customers lent their crypto, which was then routed to Genesis Global Capital, a crypto intermediary also named in the case.
Then the situation worsened. After the 2022 FTX collapse, Genesis halted withdrawals and froze customer funds, deepening the panic that defined the long crypto winter.
Last April, the SEC paused its case against Gemini while Mark Uyeda served as acting chair.
Even so, the lawsuit was still alive at the time. A federal judge had already rejected Gemini’s bid to throw it out, saying the SEC had made a believable case that securities laws may have been broken.
Now, the picture looks different. The latest update showed Gemini has settled with New York regulators. Meanwhile, Genesis has already closed its chapter with the SEC by paying a $21 million penalty.
This outcome gave Gemini a major win. It also added to a growing list of high-profile crypto cases that have wrapped up during President Trump’s administration.
There’s another reason this matters. It’s one of the first big courtroom wins crypto has notched in 2026.
And it didn’t happen in isolation. Just days ago, a federal judge tossed out a long-running class-action case linked to Mark Cuban and the Dallas Mavericks.
When Genesis halted withdrawals, the Earn program reportedly held about $940 million in customer assets.
Now, the latest filing says the story has turned. It stated that the Winklevoss twins have returned 100% of customer funds.
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