Another crypto platform wants to get out of dealing with the SEC’s questions by asking the court to throw the case out.
Gemini, a crypto platform, sent a letter to a court in New York City asking for the case against it by the SEC to be stopped. The platform’s lawyers said the accusations from the SEC are not clear.
Other platforms like Binance, Coinbase, and Bittrex (which has already agreed to settle things) also asked the court to stop the cases against them. They said the court doesn’t have the right power or that the SEC is being too controlling. But Gemini said it’s not even sure what it’s being accused of.
Alleged Failure to Meet Security Filing Rules
In the paper from the court, Gemini argues that for a complaint about selling things that should be registered as securities, the SEC needs to say exactly what those things are and show that someone actually sold them.
Gemini’s lawyers said that the SEC didn’t do these two things, so the complaint shouldn’t count.
They say the SEC’s answer doesn’t really address the problem. It seems like the SEC is saying there are two different securities, but this isn’t what the complaint says. The fact that the SEC can’t decide what the problem is shows that it’s not in a strong position and that it’s not being fair.
Also, about the Gemini Earn program, the lawyers say that no securities were sold. What really happened was people borrowed things and then gave them back.
The SEC mentions a case where securities could be sold in the future, but Gemini says this doesn’t matter because that’s just a guess.
Selling Securities Not Confirmed
The paper also says that even if the court decides that both things the SEC talks about are really securities, the SEC didn’t say clearly enough that there was actually a sale happening.
So, Gemini’s lawyers want the court to think about if the SEC’s complaint really follows the rules for a lawsuit. If the court agrees with Gemini, the crypto platform wants the case to be stopped. The court will look at this request and talk about it later.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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