Gemini Takes Legal Action Against US CFTC: Details

Gemini, a leading cryptocurrency exchange in the U.S., has filed a legal complaint against the U.S. Commodity Futures Trading Commission (CFTC). According to a post on X , Gemini accuses the agency of running a seven-year campaign of “lawfare” instead of properly enforcing regulations. Gemini Claims CFTC Spent Years Making False Accusations In the filing, Gemini claims that the CFTC has spent years making false accusations against the crypto platform while ignoring real problems in the digital asset world. The complaint says the regulator used unreliable testimony from a former employee who is no longer credible and has not shown any proof of intentional wrongdoing after seven years of investigation. As U.S. lawmakers and agencies discuss the future of cryptocurrency rules, this lawsuit could influence how regulations are applied in the digital asset industry. The case highlights the frustration among crypto companies that want fair and consistent rules instead of what they see as harsh enforcement without proper procedure. Gemini’s Regulatory Hurdles: A Case of Misrepresentation? The controversy dates back to 2017 when the brainchild of the Winklevoss twins submitted proposals to the CFTC to launch futures contracts for Bitcoin (BTC). The CFTC alleged that the exchange misrepresented critical safeguards to prevent price manipulation. These safeguards were supposed to form the backbone of a trusted financial product, yet the regulator argued Gemini fell short of expectations. Fast-forward to January 2025. Weeks before a trial was set to unravel in Manhattan federal court, Gemini and the CFTC struck a deal. Gemini agreed to pay $5 million to settle the claims , neither admitting nor denying wrongdoing. This settlement underscores the legal tightrope walked by crypto firms aiming to push boundaries while facing increasing scrutiny. SEC Sues Gemini for Earn Program Recall that the Winklevoss brothers’ crypto exchange was under intense scrutiny a few years ago. The scrutiny concerned their Earn Program , which ordinarily allowed users to earn interest on their assets. All they had to do was lend the crypto assets to Genesis Global Capital, a subsidiary of Digital Currency Group (DCG). However, the program turned negative when FTX imploded in 2022, and Gemini Earn users could not access their funds. It got worse when the US SEC sued both Gemini and Genesis, citing that Gemini Earn was an unregistered offering of securities. On the progress of the Earn Program, the exchange has paid out a $50 million settlement to compensate the investors. The post Gemini Takes Legal Action Against US CFTC: Details appeared first on TheCoinrise.com .

Source: The Coin Rise