• The SEC has alleged that crypto exchange Gemini and crypto lending firm Genesis Global Capital have been selling unregistered securities.
• Both companies have been engaged in a public spat since Genesis suspended withdrawals last year.
• Howard Fischer, a former SEC Senior Trial Counsel, joined ‘First Mover’ to discuss the details of the lawsuit and the implications for the crypto industry.
The U.S. Securities and Exchange Commission (SEC) has recently filed a lawsuit alleging that two crypto-related companies, Gemini and Genesis Global Capital, have been selling unregistered securities. This is not the first time that the SEC has taken action against crypto-related firms, as in recent years the agency has taken action against a number of companies in the space.
Gemini is a crypto exchange founded by the Winklevoss twins, and Genesis Global Capital is a crypto lending firm. The two firms have been engaged in a public spat since Genesis suspended withdrawals last year. The SEC’s suit alleges that the two companies have been selling unregistered securities, which is a violation of federal securities laws.
In response to the SEC’s lawsuit, Gemini co-founder Tyler Winklevoss tweeted that the lawsuit was “counterproductive”. To better understand the implications of the lawsuit, Moses Singer Partner and former SEC Senior Trial Counsel Howard Fischer joined “First Mover” to discuss the timing and details of the lawsuit, citing the SEC’s regulatory bandwidth.
Fischer noted that the SEC is actively monitoring the crypto industry, and that its actions should be taken as a sign that the Commission is serious about protecting investors. He also highlighted the importance of following the SEC’s regulations, and of companies taking steps to ensure they are compliant with the law.
The SEC’s action against Gemini and Genesis is a sign that the agency is taking the crypto industry seriously, and that any companies operating in the space should be aware of the regulations and take steps to ensure compliance. As the industry continues to grow, it is likely that the SEC will continue to take action against companies that are not in compliance with federal securities laws.