Former CFTC Leader Calls Agency's Gemini Settlement Reversal 'Extraordinarily Unusual'
While the CFTC collaborates with Gemini to pursue judicial reversal of a 2025 settlement agreement, a former agency chairman stated the American people "deserves a better explanation."
An ex-chairman of the United States Commodity Futures Trading Commission (CFTC) has weighed in on the regulatory body's decision to attempt vacating a $5 million settlement agreement with digital asset exchange Gemini.
Through a Wednesday filing submitted to the US District Court for the Southern District of New York, the CFTC aligned with the Gemini Trust Company in pursuing relief from judgment in a case that was originally initiated in June 2022. The cryptocurrency firm had finalized a $5 million settlement agreement with the CFTC in January 2025 during the tenure of former US President Joe Biden's administration.
"[T]he CFTC's action in reversing itself on a settled case is extraordinarily unusual," Tim Massad, a former CFTC chair and research fellow at Harvard Kennedy School, told Cointelegraph. "The explanation seems to be that the staff got it wrong, not that the law was unclear."
Based on the CFTC's filed motion, the regulatory agency pursued relief on the grounds that a whistleblower had been determined to lack credibility and that evidence had been withheld by the commission's prior leadership team.
The filing claimed that the individual who came forward as a whistleblower, identified as Gemini's former chief operating officer, provided false testimony concerning the company's Bitcoin futures pre-certification review process. The CFTC's original complaint against Gemini contained accusations that the exchange had submitted inflated figures for trading activity and volumes, thereby misrepresenting actual user demand.
"Based on the CFTC's comprehensive review, the CFTC concurs that there were significant deficiencies in [the Division of Enforcement's] evidence and the Complaint should not have been filed," said the filing.
While both the CFTC and Securities and Exchange Commission (SEC) have discontinued multiple enforcement proceedings and investigative actions against cryptocurrency firms following Donald Trump's assumption of the presidential office, no public docket filings had appeared in Gemini's matter since January 6, 2025.
Massad added:
"I know of nothing like this happening before, and I think the public deserves a better explanation."
Gemini co-founders tied to the current administration
Tyler and Cameron Winklevoss, the co-founding brothers of Gemini, contributed $1 million each to Trump's 2024 election campaign. The pair have additionally participated in meetings with Trump and been present at White House gatherings, including the ceremonial signing of the stablecoin-focused GENIUS Act.
Based on a text message exchange that was disclosed publicly in September 2025 by former CFTC commissioner Brian Quintenz, Tyler Winklevoss brought up the CFTC's legal action against Gemini as Quintenz was being evaluated for Trump's nomination to lead the regulatory body. Trump subsequently retracted Quintenz's nomination, which resulted in his alternative selection, Michael Selig, receiving confirmation as chair and becoming the agency's current sole commissioner.
Of particular note, certain phrasing within the CFTC's motion seeking to vacate the settlement bore resemblance to language used in the Winklevoss text message exchange, including references to "abuse" of regulatory authority and "false whistleblower." Cointelegraph contacted Gemini seeking comment but did not receive an immediate response.