U.S. judge rejects motion to dismiss SEC lawsuit against Gemini Earn project

A U.S. district judge has rejected a motion by crypto exchange Gemini and crypto lending company Genesis to dismiss a case brought by the Securities and Exchange Commission (SEC) against the Gemini Earn project. Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York said in an order on Wednesday that the SEC "reasonably alleged" that Genesis Global Capital, LLC and Gemini Trust Company, LLC offered and sold unregistered securities to retail investors through Gemini Earn. securities. The judge cited the Howey test and the Reves test, which present a multifactor test for determining whether an asset falls within the scope of securities laws. “Under Howey and Reves, the SEC reasonably alleged that defendants offered and sold unregistered securities through the Gemini Earn program,” Judge Ramos said. "Accordingly, defendants' motion to dismiss is denied."