Gemini of the Winklevoss twins has agreed to settle a case with the CFTC, paying a $5 million fine. Gemini has neither confirmed nor denied accusations of misleading the financial regulator.
Tyler and Cameron Winklevoss made major efforts to support pro-crypto candidates in the last election, but have criticized the CFTC on several issues. Many industry advocates want the CFTC to take over from the SEC when it comes to crypto regulation, but the twins could complicate that effort.
The Winklevoss twins and the CFTC settle in
The Gemini Trust Company, founded by twins Cameron and Tyler Winklevoss, managed to avoid a legal battle with the CFTC. This legal battle began in 2022 when the CFTC sued Gemini for allegedly lying about its methods to prevent Bitcoin price manipulation.
“After (CBOE) certified the proposed Gemini futures contract as eligible for listing, the CFTC, pursuant to its statutory authority, initiated its own investigation. Gemini’s statements, according to the CFTC, were false and misleading in material matters, which led to this lawsuit,” the complaint states.
Prior to the settlement, the parties would have gone to court a day after President-elect Trump’s inauguration. The twins strongly supported him in the 2024 election, which could have made a public legal battle more embarrassing.
In fact, Cameron and Tyler Winklevoss have recently attempted to influence pro-crypto policy in several ways beyond the CFTC.
For example, they donated $1 million in November to try to unseat Senator Elizabeth Warren, a notorious crypto opponent. They also welcomed Elon Musk’s DOGE reforms.
Although this legal battle may have reached a settlement, the trial lasted two years. So the Winklevoss twins may continue to experience acrimonious feelings.
Last August, the twins criticized the CFTC for trying to restrict prediction markets. Additionally, before the elections, they demanded clarification on who the next SEC chairman might be.
However, since Trump won the presidency, some sections of the industry have demanded that the CFTC take over some of the crypto regulation duties from the SEC.
For obvious reasons, neither Tyler nor Cameron Winklevoss have strongly supported the CFTC as the primary crypto regulator. Yet the new Senate majority leader supported this goal, adding further momentum. This whole episode shows the cracks that can appear in a seemingly unified pro-crypto coalition.
That means the two haven’t made too many specific demands regarding the future of U.S. crypto regulation, beyond their efforts to put Trump in the White House. After the election, they urged prosecutors to investigate the SBF’s political contributions but have few other specific requests.
Overall, efforts to empower the CFTC to take on regulatory responsibilities could move forward, but likely without support from Winklevoss.
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