CFTC and Gemini seek to vacate prior judgment in crypto enforcement case

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CFTC, Gemini seek to vacate prior judgment

Highlights

CFTC and Gemini jointly filed a motion to vacate the January 2025 consent order, including a permanent injunction, from the 2022 lawsuit settlement.
CFTC concluded after review that its original 2022 complaint against Gemini should not have been filed under current enforcement standards, with the $5 million settlement already paid.
The joint motion signals major shifts in U.S. crypto enforcement, as the CFTC cites questionable evidence and evolving digital asset regulatory standards driving the decision.

Joint filing targets 2025 consent order

As reported by the Commodity Futures Trading Commission in a press release and first covered by The Block, the agency and Gemini jointly filed a motion on Wednesday asking a federal judge to vacate the January 2025 consent order, including a permanent injunction, linked to the regulator's 2022 lawsuit against the crypto exchange.

The CFTC says it conducted a comprehensive review of the case, including its history, evidence, litigation tactics and shifts in federal digital asset policy. The agency says that review led it to conclude the complaint should not have been filed and would not be filed under current enforcement standards.

The original lawsuit, filed in June 2022, alleged Gemini made false or misleading statements in 2017 about the risk of manipulation in its bitcoin futures contract. Gemini agreed in January 2025 to pay $5 million to settle the case, and the joint motion says that amount has already been paid in full.

Implications for crypto enforcement oversight

In its Wednesday statement, the CFTC says the complaint relied on a whistleblower account that lacked credibility and on evidence against Gemini that was questionable. The agency also says the investigation improperly focused on Gemini instead of the alleged fraudsters.

Gemini had challenged the case earlier, filing a complaint letter with the CFTC Inspector General in June 2022 alleging it was subjected to an abusive investigation and lawfare. The new joint motion marks a rare step in which the regulator itself is backing relief from a prior court judgment, underscoring how revised U.S. enforcement standards for digital assets are reshaping the sector's regulatory landscape.

Our earlier article on the White House review of the CFTC’s proposal for prediction markets outlined how federal regulators are pressing claims of exclusive jurisdiction over platforms like Kalshi and Polymarket as some states push back. We also noted that the dispute over whether oversight belongs with the CFTC or individual states could ultimately be settled by the Supreme Court, shaping compliance costs and expansion across the sector.

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