CFTC Moves to Void Gemini's $5 Million Settlement, Citing Flawed Evidence
Updated
Updated · The New York Times · May 28
CFTC Moves to Void Gemini's $5 Million Settlement, Citing Flawed Evidence
6 articles · Updated · The New York Times · May 28
$5 million in penalties against Gemini could be erased after the CFTC and the crypto firm jointly asked a federal judge to nullify their January 2025 consent order.
The agency said it should never have sued Gemini over claims it misled regulators about its Bitcoin business, arguing the evidence was flawed and its own lawyers' conduct fell below federal standards.
Gemini had settled without admitting guilt in a case brought under the Biden administration, but the commission is now seeking to unwind that court win entirely.
The reversal adds to a broader shift under President Trump's return, with the CFTC increasingly taking steps that benefit crypto and prediction-market companies as those sectors become more central to its remit.
After reversing its own victory, how will the CFTC now police fraud in the rapidly growing crypto markets?
With new joint rules, will the long-standing regulatory 'turf war' over cryptocurrency finally come to an end?
As federal regulators claim exclusive power, are state-level crypto consumer protections becoming obsolete?
CFTC’s $5 Million Gemini Settlement Overturned: Political Donations, Discredited Evidence, and a New Era for Crypto Regulation
Overview
On May 27, 2026, the CFTC and Gemini Trust Co. made a historic move by jointly asking a judge to dissolve their earlier $5 million settlement, which Gemini had already paid. This reversal came after the CFTC admitted it had violated fair enforcement principles during the original agreement. The decision is especially notable because the Winklevoss twins, who own Gemini, donated $2 million in Bitcoin to Donald Trump’s 2024 presidential campaign, and now regulators under the new administration are seeking to return a penalty to their company. This sequence of events highlights the potential influence of political contributions on regulatory actions.