Cryptocurrency exchange Gemini with troubled crypto broker Genesis have jointly filed motions to dismiss a lawsuit from the US Securities and Exchange Commission (SEC) against Gemini's Earn lending product.
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According to a court filing on Friday, Genesis arguments that the program was aimed at loans and not securities. The bankrupt crypto lending broker claims the SEC falsely classifies these loans as "investment contracts or security notes." Gemini, in its turn, said the regulator wants to turn the Earn program "into something it was not: the sale of unregistered securities."
Later, the New York-based crypto exchange said in a blog update, the SEC's action "does nothing to speed up the Genesis bankruptcy case or unlock assets that need to be returned to Earn users."
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