The US Commodity Futures Trading Commission (CFTC) has filed to vacate last year's $5mn settlement with Gemini, marking an end to a nine-year saga in a rare move by a federal regulator to reverse one of its own enforcement actions.
CFTC Files To Undo Gemini Settlement in Rare Crypto Enforcement Reversal
28 May 2026 - 13:03 CEST
By Sandmark staff
In a court filing and accompanying statement, the agency admitted that, under current enforcement standards, it should never have brought the case against the Winklevoss twins' exchange. It said the Biden-era action relied heavily on an unreliable whistleblower and relevant information had not been fully presented.
The self-certification saga
The move ultimately stems from a 2017 application by Gemini and the Cboe Futures Exchange to launch the first-ever US-regulated Bitcoin futures contracts, which required Gemini to undergo a "self-certification" process with the CFTC. In 2022, the CFTC sued Gemini in a case based partly on evidence from a whistleblower who was later discredited, and early last year Gemini agreed to pay a $5mn civil penalty.
"Instead of focusing on alleged fraudsters, the investigation pursued Gemini, who was a fraud victim, for purported false statements to the CFTC during a registration application process," the CFTC said in a joint filing with the exchange, based on an internal investigation.
A revised enforcement approach
"These findings not only call into question the CFTC’s enforcement process in this instance but also demonstrate the necessity of the federal government’s revised enforcement approach and standards, including in the digital asset space," it said.
Under its current chairman, Michael Selig, who has the backing of President Donald Trump, the CFTC has been shifting towards building a regulatory framework for crypto, and away from enforcement through litigation.
The regulator said it would ask to drop the case permanently if the court sets aside the judgment.
