Gemini files a brief in its litigation against the SEC and asks that the case be kept straightforward
In a recent court filing, Gemini maintained its push for the dismissal of its complaint against the SEC on the grounds that the SEC’s claims were not well-defined.
In an attempt to get the litigation it’s involved in with the U.S. Securities and Exchange Commission (SEC) dismissed cryptocurrency exchange Gemini has submitted a reply brief.
Gemini Earn, which allows users to lend cryptocurrency assets like Bitcoin to Genesis, is being sued for reportedly selling unregistered securities in violation of applicable legislation.
The submission said that the SEC has not made the standards for asserting a violation of the act crystal plain, despite the fact that “Section 5 of the securities act is not hard to understand.”
The SEC’s stance is even more precarious given that it cannot even agree on which security is at issue. Furthermore, it stated that the court shouldn’t deal with the “convoluted analyses” offered by the SEC and that the SEC should ask simple questions to evaluate whether or not it is a security.
Gemini also argued that the SEC should single out the unregistered security before calling attention to the sale or promising to sell it. There was an accusation that the SEC had failed to do so.
In a court filing dated May 27, Gemini contended that the SEC should dismiss the lawsuit because the transactions that took place under the Gemini Earn program were effectively loans.
Gemini is represented by JFB Legal, and on August 19, Jack Baugham, one of the firm’s founding partners, issued a remark on X implying that the SEC is shifting its stance as the case progresses.
The SEC is in chaos. Baugham pointed up the muddled nature of the regulator’s reasoning by saying, “They can’t even decide what the security is.”
As one side of the argument, they assert that the Loan Agreement served as security. On the other side, they argue that the whole Gemini Earn program was security.