The Commodity Futures Trading Commission filed a joint motion with Gemini Trust to nullify their January 2025 settlement, marking an unusual reversal of the agency's own court victory. The cryptocurrency firm, run by the Winklevoss twins, paid a $5 million fine without admitting guilt over allegations of misleading officials about its Bitcoin business.

Gemini's founders are among President Trump's closest crypto allies, having financially backed his re-election campaign and invested in Trump family ventures including a private club partially owned by Donald Trump Jr. The CFTC's filing criticizes its own legal staff, claiming they pursued the wrong target and used improper tactics to force the settlement.

This represents the second major victory for Gemini against federal regulators, following the SEC's dismissal of a separate lawsuit in January. The moves align with broader changes at the CFTC since Trump's return to office, including workforce reductions and a shift toward lighter crypto enforcement.

The agency's reversal follows Trump's January 2025 executive order calling for a more industry-friendly federal stance on cryptocurrency. CFTC Chair Michael S. Selig has maintained he will enforce regulations, but the filing signals a dramatic change in how the agency pursues crypto cases.