It seems that the cryptocurrency market is preparing to experience another major legal case: the US Securities and Exchange Commission has accused the Gemini company of offering and selling cryptocurrency securities through Gemini Earn without registering the transactions.
The press release, issued on Jan. 12, claims that the two companies have “raised billions of dollars of crypto assets from hundreds of thousands of investors.” The SEC is also investigating other securities law violations, and other related entities and individuals. SEC Chairman Gary Gensler tweeted about the case on Jan. 13, sparking a huge discussion in the cryptocurrency community regarding the US security body’s allegation.
The Gemini Earn program, which has already been the focus of heated debate between Cameron Winklevoss and DCG CEO Barry Silbert, was launched in February 2021. This earnings program allowed retail investors to earn interest on their businesses.
Officials also referred to the collapse of other cryptocurrency lending programs. They noted that these programs must comply with the law in order to operate.
Gemini Co-Founder Responds
Tyler Winklevoss, brother of Cameron and co-founder of the Gemini exchange, responded to the accusation, declaring himself “disappointed” on Twitter. He then countered Gensler’s allegation by noting that the Gemini Earn program was regulated by the NYDFS and that Gemini had been in discussions with the SEC for 17 months. Then he concluded by defining the charge: “an artfully fabricated parking ticket”.
Gemini is an exchange that has had a lot of focus on regulation. The company is registered in New York, a municipality known for its extreme strictness in allowing cryptocurrencies to operate.
The SEC Does Not Reduce Control Over Cryptocurrencies
The SEC has focused intensely on the cryptocurrency market over the past 12 months, and Gensler has clarified the agency’s intentions. The SEC chairman said non-compliant cryptocurrency firms will face a tough lawsuit in 2023.
Some of these cases have angered the cryptocurrency community, such as the one against Ripple. The SEC has also targeted cryptocurrency auditors, as the authority doubts the legitimacy of the reviews.
This article is originally published on it.cryptonews.com