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Gemini Has Filed a Defense To Dismiss the SEC’s Lawsuit Regarding the Gemini Earn Project

August 19th, cryptocurrency trading platform Gemini submitted a reply supporting the dismissal of the lawsuit filed by the US Securities and Exchange Commission (SEC) regarding the Gemini Earn project. The SEC claims that by establishing the Gemini Earn program and providing users with the opportunity to lend digital assets to Genesis based on specific loan agreements, Gemini participated in the illegal sale of unregistered securities. This means that the SEC must prove two things: (1) the existence of securities and (2) the sale of "such securities".

However, Gemini argues that the SEC cannot prove these two requirements. On the one hand, they claim that the loan agreement is a security. On the other hand, they claim that the entire Gemini Earn project itself is a security, which is absurd on the surface.

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