A financial regulatory body has requested a federal court to overturn its previous decision against Gemini Trust, a prominent cryptocurrency firm closely associated with President Trump and his ventures. The Commodity Futures Trading Commission (CFTC), which oversees specialized financial markets, stated that it should not have sued Gemini for allegedly misleading officials regarding its Bitcoin operations. Although Gemini did not admit guilt, it agreed to a settlement in January 2025, which included a $5 million fine.
In a joint filing with Gemini on Wednesday, the CFTC sought to nullify the consent order agreed upon under the Biden administration. The commission criticized its own legal team, highlighting that the evidence against Gemini was flawed and that the legal conduct did not meet the standards expected from a federal entity.
This action is part of a broader pattern observed since Trump’s return to office, which has seen regulatory leniency towards firms in the cryptocurrency and prediction markets sectors—areas where the Trump family has significant financial interests. An investigation by The New York Times recently uncovered that the CFTC has diminished its workforce, removed career officials, and limited enforcement actions within the crypto sphere.
This shift was further emphasized by Trump, who endorsed the CFTC’s chair, Michael S. Selig, for his performance and stressed the importance of a thriving crypto industry and prediction markets. The CFTC’s recent motion marks yet another significant development in favor of Gemini, which previously saw the Securities and Exchange Commission dismiss a long-standing lawsuit related to a lending program involving digital assets.
Gemini’s founders, Tyler and Cameron Winklevoss, have played influential roles in supporting Trump, financially contributing to his re-election campaign and various ventures associated with his family. Their investment firm has also backed a cryptocurrency company co-founded by Eric Trump.
In its original lawsuit, the CFTC alleged that Gemini officials had misled agency staff during a Bitcoin auction. A settlement was reached shortly before Trump’s second inauguration, with Gemini agreeing not to publicly claim that the charges were baseless. However, five months post-settlement, Gemini filed a complaint with the CFTC’s inspector general, criticizing the case. Tyler Winklevoss later shared this complaint publicly on social media.
In September, Brian Quintenz, who was nominated to lead the CFTC, insinuated that the Winklevoss twins had approached Trump regarding their issues with the agency. This led to the withdrawal of Quintenz’s nomination weeks later.
The latest federal filing aligns with Gemini’s assertion that the CFTC targeted victimized parties rather than genuine wrongdoers. It also contended that the agency employed inappropriate methods in pursuing the case. While Selig promised robust enforcement of regulations across various sectors, the CFTC’s stance appears to have shifted towards a more lenient approach following an executive order issued by Trump in early 2025 that called for a more amicable federal policy towards the cryptocurrency industry. A spokesperson for the agency pointed out that an internal review had identified shortcomings in the case against Gemini, stressing that the submitted motion and supporting documents reflect these findings.
