- CFTC backed Gemini’s request to remove previous federal court judgment.
- Regulators admitted earlier evidence against Gemini raised serious credibility concerns.
- Agency leadership changes intensified scrutiny surrounding crypto enforcement decisions and investigations.
The Commodity Futures Trading Commission has backed Gemini’s request to remove a federal judgment tied to the agency’s 2022 enforcement lawsuit against the exchange.
In a joint court filing submitted Wednesday, both parties asked a federal judge to vacate the January 2025 consent order, including the permanent injunction previously imposed on Gemini. The request followed an internal review by the regulator, which concluded the case would not have been filed under current enforcement standards.
According to the CFTC, officials reviewed the investigation history, litigation conduct, and evidence used during the case before reaching the decision. The agency stated that investigators relied on a whistleblower account with credibility concerns while key evidence presented against Gemini also raised questions.
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CFTC Questions Earlier Evidence Used Against Gemini
Gemini previously agreed to pay a $5 million settlement connected to allegations involving statements made during discussions about a bitcoin futures product in 2017. However, the regulator now says the investigation improperly shifted attention toward Gemini instead of individuals allegedly involved in market manipulation.
Additionally, the CFTC acknowledged that Gemini faced limitations obtaining evidence during the legal process. The agency also admitted certain personnel used regulatory authority improperly during settlement negotiations, according to the filing.
The regulator further stated that the findings exposed weaknesses within its earlier digital asset enforcement process. Consequently, officials linked the review to broader policy changes now shaping cryptocurrency oversight in the United States.
Internal Review Reshapes Gemini Enforcement Dispute
The latest reversal arrives during a broader shift in digital asset enforcement under President Donald Trump’s administration. Michael Selig recently assumed leadership of the agency after the White House withdrew former nominee Brian Quintenz.
Meanwhile, Quintenz previously alleged that Gemini co-founder Tyler Winklevoss lobbied President Donald Trump against his nomination amid tensions surrounding the enforcement dispute.
The case has also resurfaced following reports involving crypto-related political concerns within the agency. A recent New York Times investigation stated that officials examining businesses linked to the Trump family later departed the CFTC. The report referenced Polymarket, Crypto.com, and Gemini-affiliated prediction platform Gemini Titan. However, the White House rejected claims suggesting conflicts of interest surrounding those businesses.
At present, Selig remains the agency’s only commissioner while four seats remain vacant. The CFTC also continues pursuing expanded authority over prediction markets tied to digital assets. The joint filing represents a major reversal for the regulator and could influence future cryptocurrency enforcement decisions across the United States.
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