The U.S. Commodity Futures Trading Commission (CFTC) has jointly asked a federal court to void a $5 million settlement with crypto exchange Gemini — a deal struck in January 2025 under the Biden administration. CFTC Chair Michael Selig publicly called the original enforcement case politically motivated and said the agency is "starting fresh."
What Happened
In 2022, the CFTC sued Gemini, alleging the exchange had made false statements about bitcoin futures contracts. In January 2025, Gemini settled for $5 million and agreed to an injunction barring it from making misleading statements to the regulator.
On May 28, 2026, the CFTC and Gemini jointly filed a request in the U.S. District Court for the Southern District of New York to fully vacate the settlement, the injunction, and the underlying enforcement action.
The Political Angle
CFTC Chair Michael Selig — a Trump administration appointee — said plainly: "They politically targeted people like the Winklevoss twins, and that's not acceptable." The agency concluded that "the complaint should not have been filed — and would not have been under current enforcement standards."
Gemini co-founders Tyler and Cameron Winklevoss each donated $1 million to Trump's 2024 presidential campaign. They have since attended White House events, including the signing ceremony for the stablecoin-related GENIUS Act.
Why This Is Unprecedented
Tim Massad, former CFTC chair and a fellow at Harvard Kennedy School, called the move "extraordinarily unusual," saying he is unaware of any prior case in which a regulator sought to unwind an already-settled enforcement action.
If the court approves the request, the $5 million penalty will be formally erased and the injunction lifted — leaving Gemini free of any lingering regulatory constraints from the case.
What It Means for the Industry
The reversal is part of the Trump administration's broader effort to roll back Biden-era crypto enforcement. The SEC and DOJ have taken similar steps, closing other high-profile cases. For exchanges and investors, the message is clear: Washington's posture toward crypto has fundamentally changed — though critics warn that these reversals risk blurring the line between regulatory independence and political favoritism.
