On Friday, October 16, 2026, Moneyweb reported that a federal judge in New York has rejected a joint request from the Commodity Futures Trading Commission (CFTC) and crypto exchange Gemini Trust Co to undo a $5 million enforcement settlement reached under the previous US administration.
US District Judge Alvin Hellerstein ruled on Thursday that neither party’s arguments provided sufficient grounds for relief. He noted that Gemini had agreed to the settlement voluntarily, three weeks before the case was due to go to trial.
The exchange, led by billionaire twin brothers Tyler and Cameron Winklevoss, and the regulator had argued in May that the January 2025 settlement violated bedrock principles of fair enforcement.
The CFTC said an internal review had uncovered
The CFTC said an internal review had uncovered inappropriate litigation tactics, and that the case would not have been brought under President Donald Trump’s administration, which has been more favorable toward the crypto industry than its predecessor.
The judge also addressed Gemini’s position that it had received additional materials after the settlement was signed. Hellerstein said this may have left the company regretting its decision to settle, but it did not amount to a change in factual circumstances after the judgment that would make continued enforcement of the consent order inequitable.
The CFTC filed its lawsuit against Gemini in 2022, alleging the platform made false and misleading statements while the agency was reviewing a proposed Bitcoin futures contract.
Gemini agreed to settle two weeks before Trump
Gemini agreed to settle two weeks before Trump returned to office. Gemini has since paid the $5 million penalty. The settlement also includes a permanent injunction prohibiting the company from making false or misleading statements to the CFTC.
Financial regulators have reversed course sharply on enforcement in digital asset markets since the change of administration, with Trump pledging to make the United States the “crypto capital” of the world.
The Winklevoss twins, who are also known for their dispute with Facebook founder Mark Zuckerberg over the origins of the social network, are prominent supporters of Trump. Bloomberg News previously reported that Tyler Winklevoss played a part in derailing the confirmation of Brian Quintenz, Trump’s first pick to lead the CFTC.
Quintenz said on social media last September
Quintenz said on social media last September that the president “might have been misled” by the Gemini founders, and he posted screenshots of private messages he said he exchanged with Tyler Winklevoss in late July, before his nomination stalled.
Trump subsequently nominated Michael Selig, an attorney with a background in crypto, to head the commission.
In September, Gemini became a publicly listed company, trading as Gemini Space Station Inc. The firm has since launched a prediction market business, allowing customers to place yes-or-no trades on future events, ranging from the price of gold to the outcome of football matches.
