A U.S. district judge has denied motions from crypto exchange Gemini and crypto lender Genesis to dismiss a case brought by the Securities and Exchange Commission over the Gemini Earn program. 

Judge Edgardo Ramos said in an order in the U.S. District Court for the Southern District of New York on Wednesday that the SEC "plausibly alleged" that both Genesis Global Capital, LLC and Gemini Trust Company, LLC offered and sold unregistered securities. 

The judge cited the Howey Test and Reves Test, which lay out a multi-factor test to determine whether an asset falls under the securities laws.

"Under both Howey and Reves, the SEC has plausibly alleged that Defendants offered and sold unregistered securities through the Gemini Earn program," Judge Ramos said. "As a result, …