The Commodity Futures Trading Commission (CFTC) has taken the highly unconventional step of asking a federal judge in New York to vacate a consent order previously issued against the cryptocurrency exchange Gemini Trust. The order, which was finalized in January 2025 during the closing weeks of the Biden administration, included a $5 million penalty and an injunction prohibiting the company from making false statements to the agency regarding bitcoin futures contracts from 2017.

Former CFTC chair Tim Massad characterized the move as highly irregular, noting that it is rare for the agency to seek the reversal of a judgment it previously secured. While Massad did not comment on the specific merits of the Gemini case, he emphasized that the agency’s enforcement division historically operated with a high degree of professional integrity, typically only pursuing cases deemed strong on their merits.

The request to vacate the order comes under the leadership of Michael Selig, a recent appointee of the Trump administration. The timing has drawn attention due to the political contributions made by Gemini founders Tyler and Cameron Winklevoss to Donald Trump’s 2024 presidential campaign. Despite the request to lift the injunction, the agency clarified that the $5 million penalty already paid by Gemini would not be returned to the exchange.

In its formal filing, the CFTC stated that a comprehensive review of the investigation led to the conclusion that the original complaint should not have been filed under current enforcement standards. The agency argued that continuing to enforce the prospective provisions of the order would no longer serve the public interest or the mission of the commission. Legal representatives for Gemini welcomed the development, asserting that the case was fundamentally flawed from its inception.