Commodity Futures Trading Commission (CFTC) Chairman Michael Selig has publicly stated that enforcement actions during the Biden administration were “politically targeted” against the co-founders of the cryptocurrency exchange Gemini. He said the CFTC is now moving to correct the handling of the case and has initiated legal proceedings.
CFTC Seeks Court Approval to Undo $5 Million Settlement
According to ChainCatcher, the CFTC last week filed a motion with a federal court to rescind a $5 million settlement it had reached with Gemini in January 2025. That settlement was finalized before the Trump administration took over the commission. Chairman Selig, upon assuming his role, immediately launched a review of the case, arguing that the prior handling was unjust and politically motivated.
The move marks a significant shift in the CFTC’s regulatory posture. Selig openly criticized the previous administration’s enforcement approach as politically driven, specifically targeting certain participants in the crypto sector. Gemini, founded in 2014 by twin brothers Tyler and Cameron Winklevoss, is a licensed U.S. cryptocurrency exchange known for its compliance focus. It had previously been involved in procedural disputes with the CFTC on unspecified regulatory matters.
Founders’ Political Donations and White House Ties
During the 2024 U.S. presidential election, both Tyler Winklevoss and Cameron Winklevoss donated $1 million each to Donald Trump’s campaign. They also attended multiple White House events, including the signing ceremony for the GENIUS Act, a bill designed to create a federal regulatory framework for stablecoins. These political contributions and public appearances strengthened their connection to the Trump administration, forming a crucial backdrop for the CFTC’s reconsideration of the Gemini case.
The motion to void the settlement is now pending before the federal court, with a ruling yet to be made.