CFTC Moves to Void Gemini Settlement
The Commodity Futures Trading Commission filed a motion in federal court on May 27, asking a judge to vacate its own settlement with cryptocurrency exchange Gemini, saying the agreement no longer reflects the agency’s view of a fair outcome. The CFTC said the original order, which required Gemini to pay a $5 million civil penalty, was entered under prior leadership and does not align with how the current commission weighs enforcement priorities.
The filing marks one of the clearest public breaks yet between the Trump-era CFTC and the approach taken under former Chair Rostin Behnam.
The Settlement the CFTC Wants to Erase
The original consent order stemmed from a 2022 CFTC complaint that accused Gemini of making false or misleading statements to the agency during a 2017 review of a proposed Bitcoin (BTC) futures contract. Gemini agreed to a settlement resolving those allegations, paying the penalty without admitting or denying the underlying findings.
The CFTC said Tuesday that retaining the order on the books serves no remedial purpose and creates ongoing obligations the agency now considers disproportionate to the underlying conduct.
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Background
The 2022 action against Gemini was part of a broader wave of CFTC enforcement against cryptocurrency firms during the Behnam era, a period that also produced major actions against FTX, Binance, and BitMEX. The CFTC under Behnam adopted an expansive view of its jurisdiction over digital asset derivatives and related conduct.
The current commission, led by Acting Chair Brian Quintenz after his confirmation by the Senate in March 2026, has publicly committed to narrowing enforcement to cases involving fraud and market manipulation, and has deprioritized legacy consent orders it considers punitive rather than remedial. Gemini, co-founded by Cameron Winklevoss and Tyler Winklevoss, has operated without a new CFTC proceeding since the 2022 settlement was finalized.
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What Comes Next
A federal judge must approve any vacatur of a consent order, so the motion does not automatically dissolve the settlement.
If the court grants the request, Gemini would no longer be bound by the order’s ongoing compliance requirements. The move is likely to draw scrutiny from lawmakers who have pushed for stricter cryptocurrency oversight, and it may encourage other firms with open CFTC consent orders to pursue similar relief.
The outcome will also test how much deference courts give regulators seeking to undo their own prior agreements.
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