The Commodity Futures Trading Commission (CFTC) has formally asked a federal judge to set aside a settlement reached with Gemini, the cryptocurrency exchange co-founded by billionaires Tyler and Cameron Winklevoss. The agency argued Wednesday that the Biden-era agreement was secured through improper methods and that the case should never have been brought.
In a court filing, the CFTC stated it had determined that “inappropriate tactics” were used to initiate the enforcement action and “extract a settlement” from Gemini during the final weeks of the Biden administration. The regulator said the complaint “should not have been filed,” adding that maintaining the consent order’s prospective terms would be “inconsistent with the treatment of other regulated entities.”
The filing also warned that the settlement would “continue to have a chilling effect on both Gemini’s legitimate business operations and routine interactions” with other companies and the agency itself. The move signals a sharp reversal in enforcement posture under the Trump administration, which has been systematically unwinding crypto-related actions from the previous era.
The original case dates back to 2022, when the CFTC sued Gemini over alleged false or misleading statements about a bitcoin futures contract it offered in 2017. Those contracts allow traders to bet on bitcoin’s future price. In January 2025, the two sides agreed to a consent order finding that Gemini violated the Commodity Exchange Act by making false statements or omitting material facts. The order included a $5 million penalty.
A CFTC spokesperson confirmed to The Hill that Gemini paid the fine and that the agency is not seeking to return the money, meaning the payment stands even if the broader settlement is voided. The push to discard the agreement is part of a broader Trump administration effort to reverse Biden-era crypto crackdowns.
This shift mirrors actions by the Securities and Exchange Commission, which under the prior administration led aggressive enforcement against digital asset firms. The SEC has since dismissed cases against major exchanges like Binance, Coinbase, and Kraken, and ended probes into platforms including Robinhood and Uniswap. The trend reflects a growing divergence in regulatory approach as the new administration signals a more industry-friendly stance.
The Winklevoss twins, known for their early role in Facebook’s founding and their prominent advocacy for cryptocurrency, have been vocal critics of what they call regulatory overreach. The CFTC’s latest move could embolden other crypto firms to challenge past settlements or resist enforcement actions.
As the Trump administration continues to roll back Biden-era rules across multiple sectors, the Gemini case underscores a broader recalibration of federal oversight. Critics warn that such reversals may weaken consumer protections, while supporters argue they remove unwarranted burdens on innovation.
The judge must now decide whether to grant the CFTC’s request. If approved, the consent order would be vacated, though Gemini’s $5 million payment would remain with the government. The case highlights the volatile intersection of politics, regulation, and the fast-evolving crypto industry.
