With a change in U.S. administration, the regulatory approach to cryptocurrency is undergoing a marked shift. The Commodity Futures Trading Commission (CFTC), under new leadership, is seeking to undo a $5 million settlement with the Gemini exchange, with Chairman Michael Selig publicly branding the prior enforcement as “politically targeted” against Gemini's co-founders. Last week, the CFTC asked a federal court to vacate the settlement reached in January 2025, signaling a sharp policy reversal under the Trump administration.
From Settlement to Withdrawal: The CFTC's U-Turn
The saga began just days before President Donald Trump took office. On the eve of the inauguration in January 2025, the CFTC announced a civil settlement with Gemini Trust Company. Under the deal, Gemini paid $5 million to resolve a derivatives-related investigation, though it neither admitted nor denied wrongdoing. The timing was significant, coming as the White House was about to change hands.
Upon assuming the chairmanship, Michael Selig initiated a review of his predecessor's crypto enforcement docket. He concluded that the Gemini case was marred by political influence. Last week, the CFTC filed a motion in federal court requesting that the settlement be vacated, which would allow the agency to re-examine the matter. In a statement, Selig asserted that the previous actions were “politically targeted” and must be corrected to restore the independence and credibility of the CFTC.
The Winklevoss Brothers’ Trump Connections
Gemini was co-founded by Tyler and Cameron Winklevoss. Campaign finance records show that both brothers each contributed $1 million to Donald Trump's 2024 presidential campaign. Subsequently, they have made multiple appearances at the White House, notably attending the signing ceremony of the GENIUS Act, a piece of legislation aimed at establishing a federal regulatory framework for U.S. dollar stablecoins.
Notably, these political engagements closely align with the CFTC case timeline: the donations were made during the previous administration, while the White House appearances occurred around the same time as the CFTC’s motion to vacate the settlement. For the Winklevoss brothers, who have long pushed for clearer crypto regulations, the timing interweave adds a notable political backdrop to the enforcement reversal.