Gemini's Winklevoss twins have agreed to settle a case with the CFTC, paying a $5 million fine. Gemini has neither confirmed nor denied the allegations of misleading the financial regulator.
Tyler and Cameron Winklevoss made great efforts to support pro-crypto candidates in the last election, but criticized the CFTC on several issues. Many industry advocates want the CFTC to take over crypto regulation from the SEC, but the twins could complicate that effort.
Winklevoss and CFTC reach agreement
Gemini Trust Company, founded by twins Cameron and Tyler Winklevoss, has managed to avoid a legal battle with the CFTC. The legal dispute began in 2022 when the CFTC sued Gemini for allegedly lying about its methods for preventing Bitcoin price manipulation.
After [CBOE] certified Gemini’s proposed futures contract as eligible for listing, the CFTC, pursuant to its statutory authority, began its own investigation. Gemini’s representations, the CFTC alleges, were false and misleading in material matters, leading to this lawsuit, the complaint reads.
Before the settlement, the parties would have gone to court the day after President-elect Trump was inaugurated. The twins have strongly supported him in the 2024 election, and that could have made a public legal fight more awkward.
In fact, Cameron and Tyler Winklevoss have recently attempted to influence pro-crypto policy in a number of ways beyond the CFTC.
For example, they donated $1 million in November to a failed effort to impeach Senator Elizabeth Warren, a notorious crypto opponent. They have also praised Elon Musk’s D.O.G.E. reforms.
While this legal battle may have ended in a settlement, the process lasted two years, so the Winklevoss twins may continue to harbor bitter feelings.
In August, the twins criticized the CFTC for trying to restrict prediction markets. Additionally, ahead of the election, they demanded clarity on who the next SEC chairman might be.
However, since Trump won the presidency, some parts of the industry have demanded that the CFTC take over some of the SEC's crypto regulatory responsibilities.
For obvious reasons, neither Tyler nor Cameron Winklevoss have openly supported the CFTC as the primary crypto regulator. Yet the new Senate Majority Leader has backed this goal, adding additional momentum. This entire episode shows the fissures that can emerge in a seemingly united pro-crypto coalition.
This means the pair haven’t made many specific demands for the future of crypto regulation in the U.S. beyond their efforts to put Trump in the White House. After the election, they urged prosecutors to investigate SBF’s political contributions, but have few other specific demands.
Overall, the effort to empower the CFTC to take on regulatory responsibilities can move forward, but likely without support from the Winklevosses.
The article Gemini settles with CFTC and pays $5 million fine was first seen on BeInCrypto Brasil.