US CFTC Seeks to Cancel Gemini Settlement, Says Case Would Not Be Filed Today

The US Commodity Futures Trading Commission (CFTC) has asked a federal court to cancel its previous settlement with crypto exchange Gemini, saying the case would not have been pursued under the agency’s current approach to enforcement.

In a joint filing with Gemini, the regulator requested that the US District Court for the Southern District of New York erase a settlement reached in January 2025. The CFTC said after reviewing the matter, it concluded that the original complaint “should not have been filed” and would not move forward under today’s enforcement standards.

The case dates back to 2017, when Gemini held discussions with regulators about Bitcoin futures contracts. CFTC staff later claimed the exchange made misleading statements regarding how difficult it would be to manipulate Bitcoin futures markets. Based on those allegations, the agency filed an enforcement action in 2022.

Gemini Could Be Released From Remaining Legal Requirements

Gemini agreed to settle the case in January 2025 by paying a $5 million penalty and accepting other legal conditions. If the court approves the new request, the remaining obligations under that agreement would be removed.

This includes an injunction that currently prevents Gemini from making false or misleading statements to the CFTC in the future.

Crypto Policy Shift Under Trump Administration

The move reflects a wider change in how the CFTC handles crypto-related enforcement since President Donald Trump returned to office. Under CFTC Chairman Mike Selig, the agency has taken a more supportive stance toward digital assets.

Gemini founders Cameron and Tyler Winklevoss have also maintained close ties with the administration. Reports showed the brothers previously asked former CFTC Commissioner Brian Quintenz to review the settlement, though he said he only agreed to examine the case without making promises about the outcome.

The latest development comes as the Trump administration continues to publicly support cryptocurrency growth in the United States.