The CFTC Just Tried to Erase Its Own Case Against Gemini — Here’s Why

TLDR

• The CFTC filed a joint request with Gemini in federal court to cancel a 2025 settlement
• The agency says the case “should not have been filed” under current enforcement standards
• The original case stemmed from alleged misleading statements Gemini made during a 2017 bitcoin futures registration process
• The CFTC criticized the case for relying on a witness it described as lacking credibility
• If the court agrees, Gemini’s remaining injunction and obligations will be wiped out

The CFTC and Gemini have jointly asked a federal court to throw out a settlement that was only finalized in January 2025. The regulator reviewed its own case and concluded it never should have been brought.

What the Original Case Was About

The dispute started back in 2017. Gemini was meeting with the CFTC as part of a registration process for bitcoin futures contracts. CFTC staff concluded at the time that Gemini made false statements about how difficult it would be to manipulate those contracts.

The agency filed a formal enforcement action in 2022. In January 2025, during the final weeks of the Biden administration, Gemini settled the case. The exchange paid a $5 million fine and agreed to an injunction barring it from making false or misleading statements to the CFTC in the future.

That settlement is now what the CFTC wants to undo.

Why the CFTC Changed Course

After reviewing the case, the current CFTC said the complaint relied heavily on a whistleblower account it described as lacking credibility.

The agency also said the investigation went after Gemini, which it called a fraud victim, rather than focusing on the actual alleged fraudsters involved in the underlying dispute.

The CFTC also raised concerns about the strength of the evidence. It said agency staff improperly used their regulatory authority to create settlement leverage against Gemini.

Based on all of that, the CFTC said keeping the remaining injunction in place would not be fair or in the public interest.

What Happens Next

The case is now before the U.S. District Court for the Southern District of New York. If the judge grants the request, Gemini’s remaining obligations under the settlement will be cancelled.

The financial penalty of $5 million has already been paid, so that part of the agreement would not be affected.

The shift in the CFTC’s stance follows a broader change in tone toward crypto under the Trump administration. CFTC Chairman Mike Selig, appointed after Trump took office, has made digital assets a central part of his policy focus.

Gemini founders Cameron and Tyler Winklevoss have also attended White House events. Trump posted on Truth Social on Wednesday saying crypto’s future is “being built in America.”

Former CFTC nominee Brian Quintenz previously said the Winklevoss brothers had asked him to review the settlement. He said he would not commit to more than a review. Trump withdrew his nomination shortly after.

The court has not yet ruled on the joint request to vacate the settlement.

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