Gemini’s Motion to Dismiss SEC Claims
Gemini has responded to the SEC’s accusations of offering unregistered securities through its Gemini Earn program. The firm has filed a motion to dismiss and is advocating for an oral argument. Key points from Gemini’s response include:
- No evidence of actual sales: Gemini challenges the SEC’s inability to provide evidence of securities sales, which is crucial to proving a violation of the Securities Act.
- Ambiguous allegations: Gemini points out that the SEC’s allegations lack clarity on when, how, and to whom the supposed securities sales occurred.
- Lack of concrete evidence: Gemini emphasizes that there is a lack of concrete evidence suggesting any transfer of interests in the loan contract or the program, questioning whether any transactions occurred “for value.”
- Inconsistencies in the SEC’s stance: The SEC’s characterization of the loan agreement as the security and the broader lending program as a security is seen as a critical flaw in their case.
- Plausibility and statutory interpretation: Gemini argues that the SEC’s claims lack plausibility and that the court should stick to the clear language of the statute.
Hot Take: Gemini’s motion to dismiss highlights the lack of evidence presented by the SEC and questions the clarity and consistency of their allegations. The outcome of this case could have significant implications for the regulation of digital assets in the United States.
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