The US Securities and Exchange Commission (SEC) and popular cryptocurrency exchange Gemini have recently requested a pause in the regulator’s lawsuit over the exchange’s Gemini Earn program. In a joint letter to New York federal court judge Edgardo Ramos, the SEC and Gemini’s lawyers have asked for a 60-day hold on the case to explore a potential resolution.

The SEC initially filed the lawsuit against Gemini and crypto lending firm Genesis Global Capital in January 2023, alleging that they offered unregistered securities through the Gemini Earn program. While Genesis has already agreed to pay $21 million to settle the charges, the case against Gemini remains ongoing.

The recent request for a pause in the lawsuit suggests that both parties are open to finding a resolution outside of court. The lawyers representing the SEC and Gemini stated that a stay would be in the best interest of all parties involved and would also conserve judicial resources. They have proposed submitting a joint status report within 60 days after the stay is granted.

It is unclear what a potential resolution would entail, but the SEC has dropped several lawsuits against crypto companies under the Biden administration, including those against Coinbase, Ripple, and Kraken. This could be a sign of a more lenient approach towards the crypto industry from the SEC.

In February, Gemini announced that the SEC had closed a separate investigation into the firm, as the regulator winds back its crypto enforcement under President Donald Trump. This news was met with relief from Gemini co-founder Cameron Winklevoss, who stated that the SEC’s actions had cost the company millions of dollars in legal fees and lost productivity.

Other crypto companies, such as OpenSea, Crypto.com, and Uniswap, have also reported that the SEC has closed similar probes into their businesses. This trend suggests that the SEC may be shifting its focus away from strict enforcement of securities laws in the crypto space.

In the meantime, the crypto community eagerly awaits the outcome of the SEC’s lawsuit against Gemini. Will the two parties be able to reach a resolution, or will the case continue to play out in court? Only time will tell. Stay tuned for updates on this developing story.