Overview
- The CFTC and Gemini jointly asked a federal judge in the Southern District of New York on Wednesday to vacate the forward-looking provisions of a January 2025 consent order.
- CFTC Chair Michael Selig said Tuesday that the agency is correcting a flawed enforcement action and accused the prior administration of using federal agencies to politically target the Winklevoss brothers.
- The January 2025 order imposed a $5 million civil penalty and a permanent injunction on Gemini; the penalty has been paid and cannot be recovered but the agency is seeking removal of the injunction and other future restrictions.
- An internal CFTC review cited specific problems with the original case, including weak supporting evidence, questions about reliance on certain whistleblower testimony, and procedural lapses such as a commissioner lacking requested materials before voting.
- If the court grants the request the decision could prompt other crypto firms to seek similar relief and reshape how the CFTC enforces rules for crypto and prediction-market businesses while the New York court considers the motion.