The U.S. Commodity Futures Trading Commission (CFTC) is aiming to annul a previous settlement with the cryptocurrency exchange Gemini, arguing that its earlier findings regarding misleading statements made by Gemini were not adequately addressed.
The agency has submitted a request in federal court, in partnership with Gemini, to invalidate a settlement reached at the beginning of last year. The CFTC, after reassessing the case, stated that the initial complaint should not have been filed and would not have been pursued based on current enforcement standards, as highlighted in a statement released on Wednesday.
In January 2025, Gemini agreed to a $5 million settlement to resolve an enforcement action stemming from allegations that date back to 2017. During earlier discussions with the CFTC, the agency's staff had concluded that Gemini made inaccurate claims regarding the difficulty of manipulating bitcoin futures contracts, leading to an enforcement action in 2022.
If the U.S. District Court for the Southern District of New York accepts the CFTC's request to cancel the settlement, Gemini would be relieved of its obligations under the agreement, including a prohibition against making false or misleading statements to the commission in the future.
Since the inception of the Trump administration, the CFTC has significantly altered its approach to the cryptocurrency sector, particularly following the appointment of Chairman Mike Selig, who has prioritized digital asset policies.
Former President Trump has also shown support for the crypto industry, notably inviting the Winklevoss twins, founders of Gemini, to events at the White House.
Last year, Trump's prior nominee for CFTC chairman, former Commissioner Brian Quintenz, noted on X (formerly Twitter) that the Winklevoss brothers had asked him to reconsider the settlement, expressing dissatisfaction with his decision to only review the case. Trump subsequently withdrew Quintenz's nomination shortly after.
Trump's enthusiasm for cryptocurrency was evident in a recent post on his social media platform, Truth Social, where he proclaimed, "The new Frontier of Finance is being Built in America, and 'TRUMP' will NEVER let Crypto down!"