Gemini Settles with CFTC, Paying $5 Million Fine

The Gemini Trust Company, founded by Cameron and Tyler Winklevoss, has agreed to settle a case with the Commodity Futures Trading Commission (CFTC) for a fine of $5 million. The settlement comes after a two-year-long lawsuit, which alleged that Gemini made false and misleading statements to the CFTC regarding its methods to prevent manipulation in Bitcoin prices.

Background of the Lawsuit

The lawsuit, filed in 2022, claimed that Gemini’s representations to the CFTC were false and misleading on material matters. The CFTC alleged that Gemini’s statements led to the certification of its proposed futures contract as eligible for listing by the Chicago Board Options Exchange (CBOE). The twins neither confirmed nor denied the charges as part of the settlement.

Winklevoss Twins’ Stance on Crypto Regulation

The Winklevoss twins have been vocal critics of the CFTC on multiple issues, which may complicate efforts to empower the CFTC to take over crypto regulation from the Securities and Exchange Commission (SEC). Despite their efforts to support pro-crypto candidates in the last election, including donating $1 million to unseat Senator Elizabeth Warren, a notorious crypto opponent, the twins have not loudly supported the CFTC as a main crypto regulator.

Industry Advocates Push for CFTC Regulation

Some sections of the industry have demanded that the CFTC take over some of the SEC’s crypto regulation duties, particularly since the new Senate Majority Leader has supported this goal. However, the Winklevoss twins’ acrimonious feelings towards the CFTC, evident in their criticism of the agency’s attempts to restrict prediction markets, may hinder this effort.

Conclusion

The settlement between Gemini and the CFTC marks the end of a two-year-long lawsuit, but the Winklevoss twins’ stance on crypto regulation remains unclear. While industry advocates push for the CFTC to take over crypto regulation duties, the twins’ criticism of the agency may complicate this effort. As the crypto regulatory landscape continues to evolve, it remains to be seen how the Winklevoss twins will influence the future of US crypto regulation.

Disclaimer: This news article aims to provide accurate and timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Source: Beincrypto.com

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