A federal judge in New York turned down an unusual, united request from the Commodity Futures Trading Commission and Gemini to roll back a Biden-era enforcement action. In a Thursday ruling, US District Judge Alvin Hellerstein wrote that "neither of these arguments provide sufficient grounds for relief," and pointed out that Gemini signed off on the settlement three weeks ahead of trial.
The judge also addressed Gemini's claim that new information surfaced after the deal, writing, "Gemini's receipt of additional materials after the fact may have caused it to regret that it settled, but it did not create a post-judgment change in factual circumstances making continued application of the consent order inequitable."
In 2022, the CFTC brought a case against Gemini, asserting the crypto exchange supplied inaccurate and deceptive information while the agency evaluated a planned Bitcoin futures contract. The dispute concluded with a January 2025 settlement that included a $5 million payment and a permanent injunction requiring that Gemini not mislead the CFTC in any statements. Gemini completed the payment and agreed to the injunction.
In May, both Gemini and the regulator asked to set aside that settlement. The CFTC told the court an internal inquiry found inappropriate litigation tactics and argued the matter would not have gone forward while President Donald Trump was in office, who has presented himself as more crypto-friendly than his predecessor. According to the court record, Gemini agreed to resolve the case two weeks before Trump took office.
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Neither Gemini's attorney nor the CFTC responded immediately to requests for comment.
Tyler and Cameron Winklevoss, the twin billionaires behind Gemini who famously clashed with Facebook founder Mark Zuckerberg over credit for the social network's creation, are prominent supporters of Trump. Bloomberg News reported that Tyler Winklevoss helped derail the confirmation of Trump's initial CFTC pick, Brian Quintenz. Last September, Quintenz posted on social media that the president "might have been misled" by the Gemini founders and attached screenshots of direct-message exchanges that he said included Tyler Winklevoss in late July, shortly before his nomination stalled. Trump later selected Michael Selig, a lawyer known for his work in crypto, to lead the commission.
Gemini now trades publicly under the name Gemini Space Station Inc., and has rolled out a prediction market where customers can make yes-or-no wagers on future outcomes, from gold prices to game winners. With the court keeping the settlement and its injunction in force, the compliance guardrails around Gemini remain firmly in place. The broader backdrop is shifting too: regulators have pivoted on digital-asset enforcement, and the president has pledged to make the US the "crypto capital" of the world. If you follow crypto platforms or prediction markets, this ruling shows how policy, politics, and product launches are colliding in real time.
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