The U.S. Commodity Futures Trading Commission (Commodity Futures Trading Commission) has asked a federal judge to vacate a $5 million consent order against Gemini Trust Company, marking a rare reversal of a settled enforcement action tied to allegations of misleading statements in the firm’s bitcoin futures business.

 

In a joint filing submitted in federal court in New York, the regulator and Gemini requested that the court set aside the January 2025 order, which had resolved claims that the exchange provided inaccurate or misleading information during a regulatory review connected to its bitcoin futures product.

 

The settlement, reached during the final weeks of the previous U.S. administration, required Gemini to pay a $5 million civil penalty and comply with a permanent injunction prohibiting further misrepresentations to the regulator. The penalty has already been paid and will not be returned, even if the court grants the request.

 

The case originated from a 2022 enforcement action alleging that Gemini, founded by twins Tyler Winklevoss and Cameron Winklevoss, made false or misleading statements during the approval process for a bitcoin futures contract linked to Gemini’s spot market pricing mechanism.

 

According to court filings and regulatory statements, the CFTC now believes the original complaint should not have been brought under current enforcement standards. The agency said its review concluded the case was largely based on a whistleblower account it now considers unreliable, and that continuing to enforce the judgment would not serve the public interest.

 

The reversal reflects a broader shift in the agency’s approach to digital asset enforcement. In its filing, the CFTC indicated that under its updated policy framework, the action against Gemini would likely not have proceeded in the first place.

 

Gemini, which has consistently denied wrongdoing, agreed to settle the matter in 2025 without admitting or denying the allegations, a common practice in U.S. regulatory settlements.

While the financial penalty is no longer in dispute, the motion carries symbolic weight. 

 

If approved, it would effectively erase the legal finding of wrongdoing from the record, strengthening arguments from crypto firms that earlier enforcement actions were overly aggressive or based on incomplete evidence.

 

The case is also notable for its political backdrop. The Winklevoss twins have been active voices in cryptocurrency policy discussions and have previously supported political campaigns aligned with more crypto-friendly regulatory approaches, a factor that has drawn attention as enforcement priorities shift in Washington.