A federal judge has dismissed a rare joint request from the Commodity Futures Trading Commission (CFTC) and Gemini Trust Co. to rescind a $5 million settlement reached earlier this year. The January 2025 agreement, which was part of a Biden-administration enforcement action, required the cryptocurrency exchange run by the Winklevoss brothers to pay the penalty.
In May, Gemini and the CFTC argued that the settlement had breached fundamental principles of fair enforcement. The CFTC claimed that an internal investigation uncovered improper litigation tactics and suggested the case would not have proceeded under President Donald Trump’s administration, given his more favorable stance toward cryptocurrencies.
The judge’s decision effectively upholds the original settlement, rejecting the argument that the enforcement action was unfair. The ruling underscores the regulatory challenges facing crypto exchanges, particularly under different presidential administrations with varying approaches to the industry.