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first_img CFTC acknowledges that it should not sue Gemini and jointly requests the court to withdraw the consent order

The U.S. Commodity Futures Trading Commission (CFTC) announced on Tuesday that it has jointly filed a motion with Gemini Trust Company LLC in the U.S. District Court for the Southern District of New York, requesting the dismissal of a previous judgment against Gemini.The case was originally filed in June 2022, and the parties reached a consent order in January 2025. After a comprehensive review, the CFTC concluded that the lawsuit should not have been filed and would not be filed under current enforcement standards.The review identified six major issues: the complaint was primarily based on statements from a whistleblower of questionable credibility; the investigation targeted Gemini as a victim of fraud rather than the alleged fraudster; there were serious doubts about the strength of the evidence against Gemini; relevant supporting materials were concealed and not submitted to the commissioners during the CFTC's vote on the complaint; the litigation team invoked deliberative process privilege to prevent Gemini from obtaining evidence necessary for its defense; and personnel improperly used CFTC regulatory power to create leverage for settlement.The CFTC determined that continuing to enforce the forward-looking provisions of the consent order is neither consistent with its mission nor in the public interest, and that the non-forward-looking provisions of the consent order (such as civil penalties) have been fulfilled. The parties jointly request the court to vacate the remaining forward-looking provisions.

Multiple CFTC officials who questioned the regulation of the prediction market have been suspended and forced to resign

According to Cointelegraph, an investigative report released by The New York Times on Sunday revealed that several senior officials from the CFTC, who had raised regulatory concerns about Polymarket, Crypto.com, and Gemini affiliates, were subsequently suspended, subjected to internal investigations, and forced to resign. The three companies mentioned have been accused of having business ties to the Trump family.The report stated that then-CFTC acting chair Caroline Pham and her senior advisors intervened to assist the aforementioned companies in obtaining the necessary approvals. By the end of 2025, five officials who questioned or enforced cryptocurrency regulatory laws were placed on administrative leave and internal investigation, without being informed of the specific reasons. After leaving, Pham joined the cryptocurrency company MoonPay, which has a partnership with Polymarket, while her senior advisor Brigitte Weyls became the legal counsel for Gemini Titan—whose application was approved with her involvement.On the enforcement front, the CFTC has withdrawn at least five cryptocurrency investigations, with the number of enforcement actions plummeting from over 80 during the Biden administration to just two during Trump's term. In response, a White House spokesperson denied any conflict of interest, stating that "President Trump only acts in the best interest of the American public."
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