Gemini and Genesis sued by the SEC over lending program. Does this mean ETH and ETH staking rewards are in the crosshairs?
So the SEC has decided to Sue both Gemini exchange and Genesis over the Gemini Earn program. The SEC says that Gemini was operating an unregistered security by allowing customers to be paid interest on their crypto holdings. Their crypto would be locked up and lent out to Genesis to do whatever they please with it. Gemini exchange apparently made some money from this scheme as well as the customer who would be paid interest. Genesis owes Gemini exchange roughly 900 million bucks.
My question is will the SEC attempt to sue other exchanges, possibly Coinbase or Kraken or Binance over paying staking interest on locked up Ethereum? It’s not exactly the same as what the Gemini Earn program did, but I’m a little bit worried. Staked ETH secures the network by allowing nodes to be created to approve transactions. You get paid to keep the network running. Someone tell me that I have nothing to worry about. I’m glad Genesis is finally being forced to do something. Idk if the SEC suing them will result in any help for users with their crypto stuck with Genesis and Gemini Earn. Seems like Gensler just wants crypto users to suffer. I really hope ETH doesn’t get regulated by enforcement with this Gemini and Genesis BS. I feel like staking ETH to secure the network is totally different than the Gemini and Genesis shenanigans.