Gemini, the cryptocurrency exchange, recently filed a reply brief- which was part of its efforts to dismiss the lawsuit that it is currently facing against the United States Securities and Exchange Commission. The lawsuit does allege that Gemini Earn- which is a service that enables customers to lend some form of crypto assets like Bitcoin to Genesis- breached the securities regulations by offering securities that were unregistered.
According to the court documents filed on the 18th of August in the US District Court for the Southern District of New York, Gemini went on to argue that the SEC had failed in making a clear claim. The filing stated that Section 5 of the Securities Act wasn’t really that difficult to understand, whilst arguing that the SEC hadn’t clearly pointed out the requirements that were needed for claiming a violation of this act.
Gemini Has Filed A Case Against The SEC
Gemini’s court filing further argued that the court shouldn’t be tackling the convoluted analyses which were presented by the SEC, and the agency should be posing straightforward questions in order to determine what really qualified as a security. This prompted questions like the alleged date of the security, the buyer, and the price at which the securities were charged or offered. The crypto exchange also went on to contend that the SEC must first highlight the unregistered security first, after which it would identify the sale or the offer to sell this security. It also claimed that the SEC hadn’t fulfilled their obligations.
On the 27th of May, Gemini had argued in yet another court filing that the transactions that were carried out within the program called Gemini Earn were nothing but loans- as they requested that the SEC dismiss the complaint. On the 19th of August, Jack Baugham, one of the founding partners of JFB Legal, suggested that the SEC had been changing its argument as the lawsuit kept going on.
