The US Securities and Exchange Commission (SEC) and Gemini Trust Company have reached a resolution in principle to end a long-running securities dispute, according to a court filing in New York. Both parties requested that litigation be indefinitely paused, pending commission approval, with a deadline to update the court if no final agreement is reached by December 15.

The case stems from a January 2023 complaint accusing Gemini and Genesis Global Capital of offering unregistered securities through the Gemini Earn program between 2021 and 2022. Regulators alleged the firms raised billions of dollars in crypto from US retail investors without proper disclosures. Investors were promised interest on deposits but were not provided with the transparency required under federal securities laws.

The dispute has already seen Genesis agree to a $21 million settlement in 2024. The SEC also informed Gemini earlier this year that it would not pursue further enforcement actions related to a separate investigation, signaling that this latest deal could close one of the most high-profile crypto enforcement cases in recent memory.

Adding to the intrigue, Gemini’s co-founders Cameron and Tyler Winklevoss have maintained close political ties to President Donald Trump. The twins, financial backers of Trump’s 2024 campaign, were present at the signing of the GENIUS stablecoin bill and reportedly lobbied against the nomination of Brian Quintenz as chair of the Commodity Futures Trading Commission. Recently released text exchanges show discussions over enforcement assurances tied to Quintenz’s potential appointment.

Meanwhile, Gemini has pushed forward with its initial public offering, raising $425 million from the sale of 15.2 million shares. The combination of regulatory settlements, political influence, and a successful IPO marks a pivotal moment for the exchange as it seeks to solidify its position in the US crypto market.