The U.S. Commodity Futures Trading Commission and crypto exchange Gemini have jointly filed a motion for relief from judgment, seeking to undo a January 2025 consent order that the regulator now says "should not have been filed."
The unusual reversal stems from a case that began in June 2022, when the CFTC sued Gemini for allegedly making false or misleading statements about Bitcoin futures contract manipulation risks. The exchange, founded by Cameron and Tyler Winklevoss, settled the charges in January 2025 with a $5 million civil monetary penalty and a permanent injunction.
In Thursday's joint motion filing, the CFTC acknowledged the original complaint was largely based on a whistleblower's account "known to be lacking in credibility," describing Gemini as a "fraud victim." The regulator stated that there were "serious questions" about the strength of the evidence against Gemini, and added that personnel "improperly influenced the CFTC's regulatory authority to create settlement leverage."
The reversal follows leadership changes at the agency. Michael Selig was appointed as CFTC Chair in December 2025, after the White House withdrew Brian Quintenz's nomination in September. Quintenz, a former CFTC commissioner and President Trump's original nominee for Chair, had suggested the Winklevoss twins opposed his nomination because he would not commit to a public position on the agency's enforcement action against their exchange.
Gemini had vigorously contested the CFTC's enforcement approach, filing a letter of complaint with the CFTC Inspector General in June 2025 alleging it was the victim of an abusive investigation and "lawfare." The exchange maintained throughout the case that it was being unfairly pursued despite having been a victim of the very manipulation it had reported to regulators.
The regulatory reversal comes as Gemini pivots its business toward the emerging prediction market space, following sweeping layoffs and its exit from the UK, European, and Australian markets. The company's Gemini Titan subsidiary was approved as a Designated Contract Market and launched its predictions marketplace in December 2025. In May 2026, Gemini Olympus received a DCO license from the CFTC to act as a clearinghouse for regulated derivatives trading, including prediction markets.
At the time of the layoffs, Gemini founders Cameron and Tyler Winklevoss outlined a thesis that "prediction markets will be as big or bigger than today's capital markets" — a sector over which the CFTC has aggressively pursued regulatory authority, contesting jurisdiction with state gaming authorities.
Why it matters
A joint motion by a federal regulator and a defendant to undo a finalized consent order is procedurally rare, and the CFTC's willingness under new leadership to formally withdraw from a previously initiated case signals a meaningful shift in how the agency approaches its own enforcement record.
The CFTC's acknowledgment that its original complaint relied on a whistleblower account 'known to be lacking in credibility' and that personnel 'improperly influenced' the agency's authority raises questions about internal oversight processes at the regulator.
Gemini's simultaneous pivot into prediction markets — where the CFTC is actively contesting jurisdiction with state gaming authorities — means the exchange's regulatory relationship with the agency carries direct implications for its core new business lines.
