CFTC Moves to Vacate $5 Million Consent Order Against Winklevoss' Gemini Trust

The Commodity Futures Trading Commission has asked a federal court in New York to vacate a January 2025 consent order against cryptocurrency exchange Gemini Trust, a move a former agency chair described as "very unusual" for the regulator.

The original order, entered in the final weeks of President Joe Biden's administration, imposed a $5 million civil monetary penalty on Gemini and included an injunction barring the company from making false statements to the CFTC. The agency filed its vacatur request on Wednesday.

In a statement Wednesday, the CFTC said it had conducted "a comprehensive review" of the investigation and concluded that "the complaint should not have been filed — and would not have been under current enforcement standards."

The agency added that "continuing enforcement of the consent order's prospective provisions serves neither the CFTC's mission nor the public interest." Because the $5 million penalty has already been paid, the joint motion with Gemini targets only the order's remaining forward-looking provisions, including the injunctive relief.

Tim Massad, who served as CFTC chair during the Obama administration, said he was unfamiliar with the specifics of the case against Gemini because it arose after his tenure, but pushed back on the move in broader terms.

"What I will say is that it's very unusual for the CFTC to do this, to basically seek to vacate the judgment in a case that you brought," Massad told CNBC's "Squawk on the Street" on Thursday. He added that, in his experience, "the CFTC enforcement division was very professional and acted with integrity and care," and that staff "only brought cases that were strong on the merits."

The CFTC is currently led by Michael Selig, an appointee of President Donald Trump. Trump's 2024 presidential campaign received donations from Gemini co-founders Tyler and Cameron Winklevoss, a detail that has drawn scrutiny from critics of the decision.

Avi Perry, an attorney representing Gemini in the matter, offered a sharply different view of the proceedings. "The facts speak for themselves," Perry said in a statement to CNBC. "This case should have never been brought, and we are thankful that the CFTC has joined us in seeking to right this wrong."

The Winklevoss twins co-founded Gemini and have been prominent figures in the cryptocurrency industry. The exchange went public on Nasdaq on Sept. 12, 2025.

The CFTC's framing centers on a change in enforcement philosophy under its current leadership rather than a factual finding that the original allegations were false. The agency's statement did not specify which enforcement standards had changed or how the facts of the Gemini case failed to meet them.

The vacatur request now awaits a ruling from the federal judge overseeing the case. If granted, it would eliminate the prospective injunctive provisions of the 2025 consent order entirely, leaving Gemini without any ongoing CFTC compliance obligations stemming from that proceeding.

The episode is likely to intensify debate over the degree to which enforcement priorities at independent financial regulators shift under new political leadership — and whether past settlements reached under one administration can be unwound by the next.

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