SEC Drops Gemini Earn Case, Shifts Crypto Enforcement Strategy

The U.S. Securities and Exchange Commission’s dismissal of its lawsuit against Gemini’s Earn program this week represents more than a single case closure—it marks a fundamental pivot in the agency’s approach to cryptocurrency regulation. Under new leadership appointed by the Trump administration, the SEC is systematically winding down what industry figures termed a “war on crypto,” having now dropped or closed investigations into at least 17 major firms. This strategic recalibration, moving from broad-based enforcement to targeted actions based on demonstrable investor harm, signals a new era of regulatory posture aimed at providing legal certainty while fostering economic competitiveness in the digital asset space.

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Binance Wins Approval for Majority Control of Korea’s GOPAX

Binance has secured regulatory approval to take majority control of South Korean crypto exchange GOPAX, ending a two-year regulatory impasse that had blocked the global crypto giant’s return to the Korean market. The decision by South Korea’s Financial Intelligence Unit allows Binance to restart operations, address user repayments tied to Genesis Global Capital’s collapse, and position itself against dominant local exchanges Upbit and Bithumb. While marking significant regulatory closure for Binance, analysts expect minimal immediate market disruption given the entrenched positions of incumbent players.

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Gemini, SEC Near Settlement in Crypto Lending Case

Gemini and the U.S. Securities and Exchange Commission have reached a preliminary settlement to resolve enforcement action over the crypto exchange’s yield-bearing Earn program. The agreement could establish important precedent for how regulators treat crypto lending products in the United States. Both parties have asked the court to pause litigation while final settlement paperwork is completed.

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DCG Sues Genesis Over 3AC Promissory Note Dispute

Digital Currency Group (DCG) has initiated legal action against its subsidiaries, Genesis Global Capital and Genesis Asia Pacific, in the US Bankruptcy Court for the Southern District of New York. The complaint revolves around a $1.1 billion promissory note issued during the 2022 collapse of Three Arrows Capital (3AC). DCG alleges that the Genesis entities profited ‘hundreds of millions of dollars’ from recoveries linked to 3AC’s default without incurring losses, while DCG itself bore the financial burden. The case highlights ongoing tensions within DCG’s corporate structure and the fallout from major crypto market failures.

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DCG Sues Genesis Over $105M Promissory Note Dispute

DCG is suing Genesis Global Capital to recover $105 million linked to a $1.1 billion promissory note issued after Three Arrows Capital’s (3AC) collapse. Genesis had lent $2.36 billion to 3AC, which defaulted, prompting DCG to issue the note in 2022 to stabilize Genesis. DCG now claims that recoveries from 3AC’s collateral, including Grayscale Bitcoin Trust shares, have nullified the debt, while Genesis disputes this, arguing DCG is reneging on contractual obligations. The lawsuit adds to existing legal tensions, as Genesis previously accused DCG of fraud in a separate $3.1 billion case.

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Barry Silbert Returns to Grayscale Amid IPO Plans

Barry Silbert, founder of Grayscale Investments, has returned as chairman as the firm prepares for a US IPO. The move follows a confidential filing and leadership changes, including the appointment of four executives from traditional finance giants like Goldman Sachs and Bridgewater. Grayscale, which manages over $35 billion in crypto assets, faces ongoing regulatory scrutiny, including SEC settlements and lawsuits tied to its parent company, Digital Currency Group. Silbert’s return signals confidence in Grayscale’s future despite recent turbulence, including legal battles and the SEC’s approval of its Bitcoin ETF conversion.

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SEC Closes Gemini Investigation as Winklevoss Criticizes Regulatory Actions on Crypto

Bitcoin continues to face challenges, with over $1 billion in outflows from ETFs in a single day, yet more than 98% of assets remain held long-term. Meanwhile, the SEC has closed its investigation into Gemini without pursuing enforcement, prompting co-founder Cameron Winklevoss to criticize the agency’s regulatory approach and propose reforms to prevent future overreach.Despite the downturn, Bitcoin’s resilience is noted, as analysts emphasize the cyclical nature of its market. The ongoing pressure on Bitcoin ETFs, including significant withdrawals from major funds like BlackRock’s IBIT, highlights the ongoing tension between traditional finance and the crypto sector.

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SEC Closes Investigation Against Gemini Amid Shift in Regulatory Approach

The SEC has concluded its investigation into Gemini, marking the end of a 699-day inquiry without pursuing enforcement action. Co-founder Cameron Winklevoss criticized the agency’s previous conduct, highlighting the significant financial impact on the crypto exchange and calling for thoughtful legislation to prevent future overreach.In related news, the MyShell token surged over 34% to a new all-time high of $0.68 following Binance’s announcement of its upcoming listing and airdrop, with daily trading volume spiking by 209% to exceed $140 million.

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SEC Closes Investigation into Gemini Without Exoneration or Future Guarantees

The SEC has concluded its investigation into the crypto exchange Gemini, stating it will not recommend enforcement action at this time. However, the agency clarified that this does not preclude future actions. Co-founder Cameron Winklevoss criticized the SEC for the significant financial damage caused to Gemini and the broader crypto industry.

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