The U.S. Commodity Futures Trading Commission (CFTC) is requesting a judge to vacate a $5 million penalty levied against Gemini Trust Company, a cryptocurrency exchange led by the Winklevoss twins—Tyler and Cameron Winklevoss. This request signifies a significant shift in the agency’s position, particularly since the penalties were initially imposed during the Biden administration.
The CFTC initially accused Gemini in 2022 of making false statements related to a bitcoin futures business it intended to launch. In a settlement reached just before Donald Trump’s inauguration in January 2025, Gemini paid the $5 million fine to resolve the charges.
Now, under the Trump administration’s CFTC, the agency argues that the whistleblower testimony that formed the foundation of the Biden-era investigation was not credible. In its new submission, the CFTC asserts that Gemini was the victim of fraud, stating, “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.”
The CFTC’s move to vacate the prior settlement reflects a broader ideological shift in its approach to cryptocurrency policy since the transition from the Biden administration. Notably, while the agency is asking to void the settlement, it has stated that the $5 million penalty will not be refunded to Gemini.
The Winklevoss brothers, who gained notoriety for their legal battles with Mark Zuckerberg over the founding of Facebook, have also been significant contributors to Trump’s political efforts, donating over $1 million to his main super PAC, Maga Inc., ahead of his inauguration last year. Although they attempted to donate $1 million each in bitcoin to Trump’s campaign for the 2024 election, those contributions were returned for exceeding legal limits.
The dynamic between the Winklevoss twins and the CFTC reached a contentious point when Brian Quintenz, Trump’s original nominee to lead the CFTC, accused them of lobbying against his nomination after he declined to guarantee that he would act on the Biden-era Gemini settlement. Ultimately, Quintenz’s candidacy was withdrawn in favor of the current CFTC chairman, Michael Selig.
This request from the CFTC brings to light critical issues regarding regulatory practices in the rapidly evolving cryptocurrency sector and highlights more significant shifts in regulatory philosophy, potentially affecting how crypto businesses are treated under U.S. law moving forward.
