The Commodity Futures Trading Commission (CFTC) has pulled a 180 regarding an enforcement action filed against Gemini Spaceship (NASDAQ:GEMI).
In a statement yesterday, the CFTC explained that it had joined Gemini Trust Company in a motion for relief from judgment in CFTC v. Gemini Trust Company. The case was originally filed in June 2022 during the Biden Administration, which was decidedly anti-digital-asset innovation.
At the time the original charges were announced, the CFTC claimed Gemini was “making false or misleading statements of material facts or omitting to state material facts to the CFTC in connection with the self-certification of a bitcoin futures product.”
The regulator sought monetary penalties and disgorgement of “ill-gotten gains” as well as “injunctions relating to registration and trading, and an injunction against further violations of the Commodity Exchange Act (CEA).”
How times have changed.
The CFTC, under its current leadership, said it had conducted a “comprehensive review” of the investigation, acknowledged the change in digital asset policy, and thus determined that the lawsuit should never have been filed.
“These findings not only call into question the CFTC’s enforcement process in this instance but also demonstrate the necessity of the federal government’s revised enforcement approach and standards, including in the digital asset space,” declared the agency.
Gemini leadership has long held a strong relationship with the White House and may have played a role in the selection of the current Chairman of the CFTC.
While this is good news for Gemini, it continues to have challenges as it seeks to compete in the growing digital asset sector with more competitors on the way. The company’s most recent earnings report was disappointing, with losses exceeding expectations. Additionally, the state of New York has sued Gemini, claiming illegal gambling operations.
Gemini became a public company in 2025, and shares have tumbled since its IPO, currently trading at the low end of its 52-week range.
