The U.S. Commodity Futures Trading Commission (CFTC) has asked a federal judge to cancel a $5 million penalty and injunction against Gemini Trust Company. The agency now says its 2022 lawsuit, which accused Gemini of making false statements about a Bitcoin futures product, was not justified.
.@CFTC Joins Gemini Trust Company LLC in Motion for Relief from Judgment: https://t.co/NPQoQhxzly
— CFTC (@CFTC) May 27, 2026
This joint court filing marks a change from how the CFTC handled cases under the Biden administration. The agency admitted it had relied on a whistleblower who was not credible and said Gemini was actually the victim of fraud, not the one responsible.
Does CFTC withdrawal Signal Softer Crypto Stance Under Trump?
This legal move supports complaints Gemini made in June 2025. At that time, Gemini said the agency acted unfairly, delayed approvals, and used pressure tactics. Court records show regulators pushed the company into settling in January 2025. Now, both sides want to cancel the agreement.
This change is part of how the federal government has overseen digital assets since the Trump administration took office. Gemini’s co-founders, Tyler and Cameron Winklevoss, supported Donald Trump’s 2024 campaign with a $2 million Bitcoin donation. With new leadership, the CFTC is now taking a different approach to U.S. digital asset platforms and is trying to avoid past conflicts.
The U.S. Commodity Futures Trading Commission (CFTC) has formed a 35-member Innovation Advisory Committee (IAC) to tackle fast-changing technologies like blockchain and AI in derivatives and commodity markets. Chairman Michael S. Selig highlighted its importance in developing “clear rules of the road” that reflect market realities and support U.S. leadership. This step demonstrates a proactive regulatory approach to Web3 innovation, which could help reduce tensions between crypto companies and regulators.
Will these political moves reshape the crypto legal framework?
Rather than continuing long legal battles, the agency is stepping back from some digital asset investigations. This suggests it now prefers clear rules for the industry instead of relying mainly on enforcement.
It also sets an example for how federal regulators might handle old digital asset cases as political leadership changes.
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