The U.S. Securities and Exchange Commission (SEC) dropped a lawsuit against Gemini regarding its Earn product, deeming it unnecessary.

The SEC sued Gemini and Genesis Global Capital for selling unregistered securities through Gemini’s Earn product, which led to halted withdrawals after the FTX collapse and crypto market downturn.

The lawsuit was halted in April 2024, with Gemini repaying investors 100% through Genesis’ bankruptcy process.

A joint stipulation between the SEC and Gemini agreed to dismiss the claims, pending approval from a federal judge.

Genesis settled with the SEC for a $21 million fine, while Gemini settled with New York state regulators.

The dropped lawsuit is one of many dismissed by the SEC in the past year, under various administrations.

SEC Chair Paul Atkins announced new guidelines for crypto companies to determine if their products are securities, aligning with ongoing debates in the Senate on regulating crypto markets.

Read more at Yahoo Finance: SEC dismisses lawsuit against billionaire Winklevoss twins-backed Gemini over Earn product