On 12 January 2023, the U.S. Securities and Exchange Commission (“SEC”) announced that it has charged Genesis Global Capital, LLC (“Genesis”) and Gemini Trust Company, LLC (“Gemini”) over unregistered offer and sale of securities to retail investors through Gemini Earn crypto asset lending program.

The SEC’s investigation into the program revealed that…

next steps

The SEC views many crypto-related products as securities. It is expected that the SEC will be looking closely into the services and products offered in the digital assets space. It is also expected that further rules and regulations governing the crypto assets industry will be put in place to protect investors’ interests. Crypto and exchanges, as well as digital platforms that provide any advisory or trading services of crypto currencies and digital assets should take note of their ongoing disclosure requirements for customer activities. They must follow the proper registration and disclosure procedures when offering these products to investors and should keep up to date with upcoming regulatory developments.

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