CFTC Seeks to Void Gemini's $5 Million Fine as Capture Allegations Engulf Selig
Updated
Updated · The New Yorker · Jun 1
CFTC Seeks to Void Gemini's $5 Million Fine as Capture Allegations Engulf Selig
1 articles · Updated · The New Yorker · Jun 1
Last week, the Selig-led CFTC asked a judge to vacate Gemini’s 2025 $5 million settlement, saying the case relied on a non-credible whistleblower and should never have been filed.
The reversal follows lobbying by Gemini’s owners, the Winklevoss twins, who backed Trump with about $1.7 million in direct campaign donations and tens of millions more to pro-crypto super PACs.
Mike Selig, 36, now wields unusual power as the CFTC’s lone commissioner, while reports say the agency has cut staff, purged career officials and sharply reduced crypto enforcement under Trump.
The Gemini move lands as the CFTC also pushes to control booming prediction markets, where volume jumped from about $5 billion in September to $24 billion in April, setting up a widening fight with states over gambling oversight.
As these 'truth machines' boom, how can they be shielded from widespread market manipulation?
Will the clash between federal and state regulators ultimately help or hinder financial innovation?
Are prediction markets the future of finance or a new form of digital gambling?
CFTC Vacates $5 Million Gemini Penalty: Unprecedented Move Raises Regulatory Capture and Crypto Influence Concerns
Overview
In May 2026, the CFTC took the unprecedented step of moving to vacate its $5 million settlement with Gemini Trust Company, which had been agreed to in January 2025. This reversal, after Gemini had already paid the penalty and accepted an injunction, signals a major shift in regulatory approach. The move could have far-reaching effects on the digital asset sector, potentially encouraging other crypto companies to challenge past settlements and pressuring agencies like the SEC to reconsider their enforcement strategies. The outcome of this case may reshape how regulators and the crypto industry interact in the future.