CFTC Chairman Michael Selig has publicly charged that enforcement actions against the co-founders of crypto exchange Gemini during the Biden administration were “politically targeted.” Selig said he is actively pushing to correct the handling of the case and has already taken legal steps. This rare open accusation puts the prior administration’s crypto regulatory moves under scrutiny and raises questions about enforcement independence.
CFTC Moves to Vacate the $5 Million Settlement
Under Selig’s leadership, the CFTC last week formally asked a federal court to vacate the $5 million settlement it had reached with Gemini in January 2025. The settlement was inked before the Donald Trump administration assumed control of the commission. Selig views the settlement as lacking political neutrality, and his motion to vacate it aims to correct a decision he says was made under political pressure by his predecessor. The move is seen as a significant shift in CFTC’s enforcement posture and reflects how different administration cycles can deeply influence regulatory stances.
A Settlement Timed Amid a Power Transition
The January 2025 settlement stemmed from a CFTC investigation into Gemini’s business practices, although the specific compliance failings were not detailed in the latest filing. Crucially, the settlement was concluded on the eve of the presidential power transfer, casting doubt on its fairness. While the CFTC’s court motion does not explicitly deny the legal basis for the original settlement, Selig’s public remarks indicate he believes the agreement was motivated by politics rather than objective facts. Such a reversal is unusual in federal regulatory history, making this case a potential benchmark for assessing political neutrality within enforcement agencies.
The Winklevoss Twins’ Close Ties to Trump
Gemini co-founders Tyler and Cameron Winklevoss each donated $1 million to Trump’s 2024 presidential campaign. Moreover, the brothers have appeared at multiple White House events, including attending the signing ceremony of the stablecoin-related GENIUS Act. These public political connections add sensitivity to the CFTC’s decision to seek vacatur. As the crypto industry and political power become increasingly intertwined, this episode is not only about whether a single exchange’s fine can be unwound, but also serves as a litmus test for the independence of regulatory bodies.