The CFTC and Gemini jointly ask a federal court to undo key parts of a 2025 consent order tied to a long-running enforcement dispute over Bitcoin futures products. A May 27 filing in the Southern District of New York says the original case should not have proceeded under current enforcement standards for digital assets. The filing links changes to an executive order that led multiple U.S. agencies to modify enforcement approaches and standards. The CFTC states it completed a comprehensive review of evidence and the charging decision and concluded the complaint would not have been filed under current standards. The filing also says enforcement staff used inappropriate tactics and that the investigation relied heavily on a whistleblower account known to lack credibility, with serious questions about evidence strength.
"The original lawsuit arrived in 2022 and focused on statements tied to the approval process for Bitcoin futures products launched with the Cboe Futures Exchange in 2017. Regulators questioned Gemini’s comments about prefunding practices, market-maker rebates, self-trading controls and auction trading volume. The CFTC concluded the complaint should not have been filed and would not have been under current enforcement standards, according to the filing."
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