CFTC Chair Michael Selig said on June 2 during an interview on CNBC’s “Squawk Box” that the CFTC’s enforcement action against the Gemini exchange earlier was part of the Biden administration’s “weaponization of federal agencies.” This is the first time the CFTC has commented publicly on this case since last week, when it filed a request with a New York federal judge to lift a January 2025 injunction.
CFTC’s request to lift the January 2025 injunction: confirming the terms
Last week, the CFTC asked a New York federal judge to vacate the January 2025 consent order against Gemini. Based on publicly available legal documents, the injunction included the following terms:
Penalty amount: $5 million
Injunction: Prohibits Gemini from making false statements to the CFTC
Effective time: During the final weeks of the Biden administration’s tenure
Former CFTC Chair Tim Massad had previously publicly called the injunction “very unusual.” Selig said he would not go into the specific facts of the case in detail because the litigation is still ongoing.
The original complaint: the CFTC’s 2022 allegations against Gemini
The case was filed in 2022. The CFTC alleged that Gemini made false or misleading statements in 2017 during its application process to the CFTC for approval of a bitcoin futures product. The CFTC’s specific allegation was that Gemini misstated the extent to which its bitcoin futures contracts were susceptible to manipulation. The case is still ongoing in the federal court in New York.
Selig’s direct quote on Tuesday: the confirmed public statement
In his public remarks on CNBC’s “Squawk Box,” Selig said: “The Biden administration has weaponized federal agencies to go after the crypto industry and many other industries. They’re attacking people like the Winklevoss brothers for political purposes, and that’s unacceptable. We’re correcting these wrongs. Federal agencies should not be used to wage legal wars.”
He added: “If the agency is used for political persecution, we’re going to reverse that situation, start over from scratch. That won’t happen again in my term, and it won’t happen again in any administration’s term moving forward.”
FAQ
Which specific legal document is the CFTC asking to withdraw?
The CFTC is asking the New York federal judge to withdraw the consent order that took effect in January 2025 during the final weeks of the Biden administration. It includes a $5 million penalty and an injunction prohibiting Gemini from making false statements to the CFTC. Former CFTC Chair Tim Massad previously described this injunction as “very unusual.”
What were the specific allegations with which the CFTC originally sued Gemini?
In 2022, the CFTC sued Gemini, alleging that it made false or misleading statements in 2017 when it applied to the CFTC for approval of a bitcoin futures product. The specific allegation was that Gemini misrepresented the extent to which bitcoin futures contracts were susceptible to manipulation. As of the time of the report, the case is still ongoing.
What verified political connection is there between Tyler and Cameron Winklevoss and Trump’s campaign?
Tyler and Cameron Winklevoss are among the largest individual crypto donors to Trump’s 2024 presidential campaign. This information is part of public records. In the interview, Selig did not make any specific comments about this connection, and only stated the procedural propriety of the enforcement action.
