U.S. CFTC seeks to void Gemini settlement in crypto enforcement reversal

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CFTC seeks to void Gemini settlement

Highlights

CFTC and Gemini filed a joint request in federal court to void their $5 million settlement after the agency deemed the original enforcement case was improperly pursued.
If approved by the U.S. District Court for the Southern District of New York, Gemini will be released from all remaining settlement obligations, including an injunction prohibiting false statements to the CFTC.
CFTC's reversal of the Gemini case reflects a broader policy shift under President Trump and Chairman Mike Selig toward supporting digital assets and reducing enforcement actions against the crypto sector.

Settlement challenge follows policy review

As reported by the U.S. Commodity Futures Trading Commission, the regulator filed a joint request with Gemini in federal court to cancel a settlement reached at the start of last year after concluding its earlier complaint was improperly pursued. The agency said in a Wednesday statement that, after reviewing the matter, it determined the case would not have been brought under current management and enforcement practices.

Gemini agreed in January 2025 to settle the enforcement action through a $5 million penalty and other conditions tied to a dispute that began in 2017. CFTC staff had alleged the crypto exchange made false statements in meetings about how difficult it would be to manipulate bitcoin futures contracts, and the regulator later filed the enforcement case in 2022.

If the U.S. District Court for the Southern District of New York approves the request, the remaining obligations in the settlement would be erased. That includes an injunction barring Gemini from making false or misleading statements to the commission in the future.

Crypto policy shift reshapes enforcement landscape

The move underscores how sharply the CFTC's posture toward the digital asset sector has changed since President Donald Trump returned to office days after the Gemini settlement and Mike Selig took over as chairman. Under the current leadership, the commission is embracing digital assets as a major policy priority instead of maintaining the previous enforcement-heavy approach.

Trump is also publicly aligning his administration with the crypto industry and has welcomed Gemini founders Cameron and Tyler Winklevoss to White House events. Former CFTC Commissioner Brian Quintenz said last year on X that the Winklevoss brothers asked him to review the settlement, and he indicated they were dissatisfied when he did not commit to anything beyond that review; Trump later withdrew Quintenz's nomination to lead the agency less than three weeks afterward.

The administration's support for the sector remains visible in Trump's Wednesday post on Truth Social, where he says the "new Frontier of Finance" is being built in America and that his administration will not let crypto down. The Gemini case now stands as a test of how far regulators are willing to go in reversing legacy enforcement actions tied to the industry.

Our earlier report on the White House review of the CFTC’s proposal for prediction markets explained how federal regulators are pushing to keep sole jurisdiction over platforms such as Kalshi and Polymarket as some states seek their own oversight. We also noted that the dispute could end up in court, with questions over whether existing law supports the CFTC’s role—and that the outcome may reshape compliance obligations and growth for the sector.

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