The CFTC seeks to annul a settlement with Gemini, claiming unresolved issues regarding misleading statements. If accepted, Gemini could be free from its obligations.
The U.S. Commodity Futures Trading Commission (CFTC) is taking steps to revoke a settlement with the cryptocurrency exchange Gemini, citing unresolved issues regarding misleading statements made by the company.
In a joint filing with Gemini, the CFTC has requested a federal court to annul a settlement reached in January 2025, which involved a $5 million payment to settle claims dating back to 2017. The agency has reassessed the situation and concluded that the original complaint was unwarranted under current enforcement standards, as stated in a recent announcement.
The enforcement action against Gemini stemmed from allegations that the exchange misrepresented the ease of manipulating bitcoin futures contracts, leading to the complaint in 2022.
If the U.S. District Court for the Southern District of New York grants the CFTC’s request, Gemini would be released from its obligations under the settlement, including restrictions on making false or misleading statements to the CFTC in the future.
Since the Trump administration, the CFTC has shifted its approach to cryptocurrency, especially under the leadership of Chairman Mike Selig, who has focused on developing digital asset policies. Former President Trump has been supportive of the crypto industry, having invited Gemini founders, the Winklevoss twins, to White House events.
Last year, Trump’s nominee for CFTC chairman, Brian Quintenz, revealed on X (formerly Twitter) that the Winklevoss brothers had urged him to revisit the settlement due to their dissatisfaction with his decision to merely review the case. Trump later withdrew Quintenz's nomination shortly thereafter.
Trump's recent post on Truth Social highlighted his commitment to cryptocurrency, stating, "The new Frontier of Finance is being Built in America, and 'TRUMP' will NEVER let Crypto down!"
