Gemini exchange is taking legal action to counter the Securities and Exchange Commission’s (SEC) lawsuit, asserting that the agency failed to provide sufficient evidence that the exchange sold unregistered securities.

This move adds a new layer to the ongoing legal battles in the cryptocurrency industry, highlighting the complexities of regulatory compliance and definitions in this evolving space.

The legal dispute dates back to January when the SEC accused both Gemini and Genesis of mishandling customer funds.

The focus was on issues concerning the Gemini Earn program and a mandatory Master Digital Asset Loan Agreement (MDALA) that was required for participation.

The SEC’s lawsuit categorizes Gemini Earn and MDALA as securities, a claim that Gemini’s legal team is contesting.

Gemini’s legal team filed a court document asserting that the SEC’s case lacks conclusive evidence. They argue that the agency has not adequately demonstrated the sale or offering of the alleged securities in question.

The attorneys representing Gemini, John Baughman and John Nathanson, point out that the SEC’s complaint omits crucial details such as the sale date, parties involved, and the price set for the alleged securities.

Gemini’s lawyers further highlight that the SEC’s claims lack factual grounding and coherence. They question the SEC’s assertion that the entire Gemini Earn program was a tradable entity and challenge the notion that someone held ownership rights to the program.

The lawyers emphasize that these assertions are disconnected from the factual context provided in the complaint and are far from reflecting reality.