CFTC Chair Michael Selig has said that enforcement actions under the Biden administration were 'politically targeted' at Gemini's co-founders. Selig is working to correct the case and has taken the unusual step of asking a federal court to nullify a previous settlement.
Last week, the CFTC filed a motion to rescind a $5 million deal reached with Gemini in January 2025. The settlement was finalized just weeks before the Trump administration took office, making it one of the final moves by the outgoing CFTC.
Selig's Charge of Political Targeting
In his statement, Selig used the phrase 'politically targeted' to describe the action against Tyler and Cameron Winklevoss. While he gave no details of the case, he stressed his aim to remedy what he considers an improper approach. Such open criticism from a regulator is rare and signals a sharp break from past practice.
It is rare for a regulator to attempt to void a completed settlement. If the court agrees, Gemini could face renewed investigation. Other firms that settled under Biden might also challenge their agreements, potentially triggering a wave of reconsiderations.
Donations and White House Ties
Both Winklevoss brothers donated $1 million each to Trump's 2024 campaign, becoming major donors. These contributions came after the enforcement but align with the CFTC's current push to undo the settlement.
They also attended White House events, including the signing of the GENIUS Act, which established a stablecoin regulatory framework. Their presence reflects the close ties between Gemini and the Trump administration.
Selig's comments bring political influence in crypto regulation back into focus. If the court approves the request, it could reshape the Gemini case and set a precedent for revisiting prior administration's settlements, potentially altering the enforcement landscape.