SEC Dismisses Gemini Case With Prejudice; Atkins Era Pivots to ‘Project Crypto’
The SEC formally dismisses its lawsuit against Gemini with prejudice, cementing Chairman Atkins’ shift away from regulation-by-enforcement as Bitcoin holds $89k.
Enforcement Era Ends With a Whimper, Not a Bang
The U.S. Securities and Exchange Commission formally abandoned its pursuit of Gemini Trust Company on Friday. In a joint stipulation filed in the U.S. District Court for the Southern District of New York, the regulator dismissed its case regarding the Gemini Earn program “with prejudice.” They cannot refile. The legal battle is dead.
The regulator cited the “100% in-kind return” of assets to Earn investors, secured through the Genesis Global Capital bankruptcy, as the primary catalyst. But the timing signals a deeper structural shift. This dismissal follows the installation of Chairman Paul Atkins and the launch of “Project Crypto,” an initiative aggressively dismantling the previous administration’s regulation-by-enforcement doctrine.
The Commission’s decision… takes into account the 100 percent in-kind return of Gemini Earn investors’ crypto assets.
Institutional Pivot
The market reaction was muted but firm. Bitcoin held the $89,000 level (-0.2%), stabilizing after a volatile week of options expiry. Traders are no longer pricing in existential regulatory risk. With the SEC also reportedly retreating from cases against Coinbase and Ripple, capital allocators are shifting focus from legal defense costs to deployment. The regulatory premium is evaporating.
The dismissal aligns with Atkins’ directive to conserve resources for “fraud, theft, and lies” rather than registration technicalities. Gemini, once facing existential fines, walks away with a clean slate. The focus now shifts to the remaining state-level actions, though federal pressure has officially evaporated.
