Gemini defended against the allegations in a lawsuit filed by the SEC.
Gemini defended against the SEC’s claims in its lawsuit against the SEC. In the filings submitted to the court, Gemini stated that the SEC sought to dismiss the case, with vague allegations and varying arguments.
Gemini responds to allegations in SEC lawsuit
The lawsuit involves cryptocurrency exchange Gemini offering its customers “Gemini Earn,” a service to lend crypto assets such as Bitcoin. The SEC alleges that this service violates securities regulations by offering unregistered securities to BTC Genesis.
According to Gemini’s response petition to the court, the SEC’s claims are unclear. The dossier argues that the phrase “Article 5 of the Securities Act is not difficult to understand” does not explicitly refer to the requirements necessary to support the SEC’s claim of infringement.
Also, Gemini argues from the court that the SEC should not handle the analysis and ask open questions to determine whether the SEC can directly qualify as securities. The file also includes questions about when, to whom, and for what price the claim was made.
Gemini also argues that the SEC should have highlighted the unregistered security first and then set a proposal to sell that security, suggesting that the SEC did not.
Jack Baugham, one of Gemini’s lawyers, said on Twitter that the SEC changed its argument as the case was pending and could not make its decision on the securities. Baugham said the SEC’s claims were confusing and the regulator offered different arguments.
50259
