Newly appointed CFTC Chairman Michael Selig has dropped a bombshell, publicly alleging that enforcement actions taken during the previous Biden administration were "politically targeted" at the founders of cryptocurrency exchange Gemini. In a swift move to distance his agency from past practices, Selig has directed the CFTC to ask a federal court to withdraw a $5 million settlement reached with Gemini in January 2025—before the Trump administration assumed control.
CFTC Files Motion to Undo Settlement
The $5 million settlement was finalized during the final month of the Biden administration, shortly before President Trump's inauguration. Selig, who took the helm after the transition, argues that the agreement was tainted by political considerations, not grounded in impartial enforcement. Last week, the CFTC formally lodged a motion in federal court to vacate the settlement, signaling a sharp break from the previous regime's approach. The move is part of Selig's broader pledge to correct what he describes as "political enforcement" within the agency.
Winklevoss Brothers' Donations and White House Ties
The founders of Gemini—Tyler and Cameron Winklevoss—were each major donors to Trump's 2024 presidential campaign, contributing $1 million apiece. Their support did not go unnoticed. Following the election, the twins were frequent guests at White House events, including the high-profile signing ceremony for the GENIUS Act, a piece of legislation designed to provide a legal foundation for stablecoin issuance in the United States. This white paper-level involvement between the Winklevosses and the Trump administration contrasts with the enforcement posture of the prior CFTC, lending a political undercurrent to Selig's recent actions.
While Selig has stopped short of linking the reversal directly to the brothers' political activities, his description of the earlier enforcement as "political targeting" suggests a deeper critique of past practices. The case is now before a federal court, and no timetable for a decision has been announced. The outcome could have broad implications for how crypto regulation is enforced amid shifting political winds in Washington.