CFTC Moves to Unwind Gemini Judgment

CFTC Cites Concerns Over Evidence and Enforcement Process

The CFTC said the original complaint was largely based on a whistleblower account that was “known to be lacking in credibility.” The agency also described Gemini as a “fraud victim,” a sharp shift from the enforcement posture that led to the January 2025 settlement.

The regulator said there were “serious questions” about the strength of the evidence used against Gemini. It also said the investigation improperly focused on Gemini rather than the alleged fraudsters, and acknowledged that Gemini was prevented from obtaining evidence it needed to defend itself.

The CFTC further acknowledged that agency personnel “improperly influenced” the regulator’s authority to create settlement leverage against Gemini. “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 agency said.

Gemini had challenged the regulator’s conduct before the reversal. In June 2025, the exchange filed a complaint letter with the CFTC Inspector General alleging that it had been targeted through an “abusive investigation and lawfare.” Gemini maintained that it was unfairly pursued despite being a victim of the manipulation it had reported to regulators.

The latest filing does not automatically erase the judgment. The federal judge must still grant the joint request before the January 2025 consent order and permanent injunction can be vacated.

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Gemini’s Prediction-Market Push Adds Regulatory Context

The reversal comes as Gemini expands into prediction markets, an area where the CFTC is seeking exclusive regulatory authority. Gemini Titan was approved as a Designated Contract Market in December 2025 and launched its predictions marketplace that same month.

Gemini Olympus received a Derivatives Clearing Organization license from the CFTC in May 2026. That license allows Gemini Olympus to act as a clearinghouse for regulated derivatives trading, including prediction markets.

Gemini’s prediction-market expansion followed sweeping layoffs and exits from the UK, European and Australian markets. At the time, Gemini founders Cameron and Tyler Winklevoss said “prediction markets will be as big or bigger than today’s capital markets.”

The CFTC has been asserting its right to regulate prediction markets over state gaming authorities. The White House is also reviewing proposed CFTC rules for prediction-market platforms.

Leadership and Political Backdrop

The case reversal follows a leadership change at the CFTC. Michael Selig was appointed CFTC chair in December 2025 after the White House withdrew Brian Quintenz’s nomination in September 2025.

Brian Quintenz, a former CFTC commissioner and President Trump’s original nominee for CFTC chair, had publicly suggested that Gemini co-founder Tyler Winklevoss lobbied President Donald Trump against him after Quintenz refused to take sides in the CFTC’s legal battle with Gemini. Quintenz also suggested the Winklevoss twins opposed his nomination because he would not commit to taking a public position on the enforcement action.

A New York Times investigation published the previous Sunday claimed that CFTC career officials who raised concerns about three crypto businesses tied to the Trump family were pushed out of the agency. The three businesses named were Polymarket, Crypto.com and Gemini-affiliated prediction market Gemini Titan.

The White House said there were no conflicts of interest. Selig remains the CFTC’s sole commissioner, and President Trump has not yet nominated replacements for the four vacant CFTC commissioner seats.

For Gemini, the central legal issue remains unresolved until the court acts. For the CFTC, the filing marks an unusually explicit reversal: the regulator is asking to unwind a judgment in a case it now says would not be brought under current enforcement standards.