The motion to dismiss the SEC lawsuit filed by Gemini and Genesis was rejected by a U.S. judge

ChainCatcher news, according to The Block, a U.S. district judge has dismissed the motion to dismiss the lawsuit filed by the cryptocurrency exchange Gemini and the crypto lending firm Genesis against the U.S. Securities and Exchange Commission (SEC) regarding the Gemini Earn program.

It is reported that Judge Edgardo Ramos stated in an order on Wednesday in the U.S. District Court for the Southern District of New York that the SEC "reasonably alleges" that Genesis and Gemini offered and sold unregistered securities to retail investors through Gemini Earn. The judge cited the Howey test and the Reves test, which are used to determine whether an asset falls under the jurisdiction of securities law.

Judge Ramos indicated that based on the Howey and Reves tests, the SEC reasonably alleged that the defendants offered and sold unregistered securities through the Gemini Earn program. Therefore, the defendants' motion to dismiss was denied.

It is understood that the U.S. SEC first charged Gemini and Genesis in January 2023 for issuing and selling unregistered securities to retail investors through Gemini Earn. Genesis and Gemini attempted to dismiss the SEC's lawsuit in May, arguing that the assets involved were not securities.