Gemini Responds to SEC Lawsuit Over “Gemini Earn” Service
After Coinbase and Binance, Gemini has also filed a response to dismiss the lawsuit initiated by the SEC. Here are the key points:
– Gemini claims that the SEC has failed to present a clear case and has not provided valid classification for what constitutes a “security.”
– The crypto exchange argues that the SEC should focus on asking straightforward questions to determine if something is a security, such as when the alleged security was sold, who the buyer and seller were, and the price offered.
– Gemini’s lawyer states that the SEC’s theories of classifying the Loan Agreement itself as a security and asserting that the entire Gemini Earn program is a security are misleading and “absurd.”
– Jack Baughman, Gemini’s lawyer, highlights that the SEC cannot even determine what the security in question is and raises doubts about the SEC’s interpretation of the term “sale” in relation to Gemini and Genesis’ transactions.
– Gemini argues that the SEC is confused and inconsistent in its arguments, making the regulator look weak in their own stance.
In addition, Genesis, the other company involved in the SEC’s case, is also facing issues. Genesis’ parent company, Digital Currency Group (DCG), wants to remove Gemini’s lawsuit, claiming that DCG did not provide accurate financial information about Genesis.
Hot Take:
Gemini’s response to the SEC lawsuit reveals the company’s strong stance against the regulator’s claims. By highlighting the lack of clarity and consistency in the SEC’s arguments, Gemini aims to dismiss the case and establish its position as a compliant crypto exchange. The outcome of this lawsuit will have implications for the classification of digital assets and the regulatory framework surrounding the crypto industry.
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