U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael Seliger stated that the regulator is correcting a previous enforcement action against cryptocurrency exchange Gemini. He said the case was part of a broader crackdown on the crypto industry during the Biden administration and that the CFTC should not be used for "legal warfare."
The CFTC has requested the revocation of the order.
This is the first time the CFTC has publicly commented on the case. Previously, the CFTC had requested last week that the New York federal court overturn the January 2025 order against Gemini.
- Gemini was fined $5 million.
- By imposing an injunction, it is restricted from making false statements to regulatory authorities.
The order was issued in the final weeks of the Biden administration's term. Former CFTC Chairman Tim Massad described the move as "very rare."
The case originated from the approval of Bitcoin futures.
This lawsuit dates back to 2022. The CFTC sued Gemini at that time, alleging that the company made false or misleading statements to regulators when it applied to launch Bitcoin futures products in 2017.
The CFTC’s core allegation is that Gemini made false statements regarding whether the relevant Bitcoin futures contracts were susceptible to manipulation.
Changes in regulatory approach
In an interview with CNBC, Selig said he would not comment on the facts of the case because the litigation is still ongoing. However, he emphasized that if the regulatory agency was used for political targeting, the current team will push for correction and reopen the case.
Selig stated that the Biden administration had "weaponized" federal agencies, targeting not only the crypto industry but also other sectors. He added that such a situation should not be repeated during his term.
Additional information:Gemini is run by the Winklevoss brothers, who were among the major individual crypto donors to Trump's 2024 presidential campaign. According to CNBC, as of press time, no further comment has been received from the parties involved.
