TechFlow news: Gemini has filed a responsive pleading to dismiss the Securities and Exchange Commission's (SEC) lawsuit regarding the Gemini Earn program.
Gemini stated that the SEC claims Gemini operated an illegal unregistered securities offering by establishing the Gemini Earn program, which allowed users to lend digital assets to Genesis.
This means the SEC must prove two things: (1) that a security existed, and (2) that "such security" was sold. According to Gemini, the SEC cannot prove either point.
Gemini argues that the SEC's allegations are baseless and fail even to define what constitutes the security in question. On one hand, the SEC claims lending agreements are securities; on the other, it asserts the entire Gemini Earn program itself is a security—an inherently contradictory and absurd position. Gemini also finds equally absurd the SEC's strained attempt to identify any actual "sale." The SEC has failed in its duty to all parties, including the defendants. Today’s regulators in Washington have completely lost their way.
