A federal judge on October 15, 2026, denied a joint motion by Gemini and the CFTC to vacate a January 2025 settlement. The ruling keeps Gemini bound by a $5 million penalty and a permanent injunction, despite the CFTC's shift in enforcement priorities.
The ruling upholds a $5 million settlement and permanent injunction against Gemini, impacting the crypto exchange's compliance and future product approvals.
A US federal judge has rejected a bid by Gemini and the Commodity Futures Trading Commission (CFTC) to undo a $5 million settlement and permanent injunction against the crypto exchange. U.S. District Judge Alvin K. Hellerstein ruled on October 15, 2026, that arguments based on post-settlement evidence and policy shifts did not meet the strict legal standard required to reopen a final judgment.
The CFTC, under a new administration, had concluded its original complaint against Gemini should not have been filed. This led the agency to join Gemini in May 2026 to seek relief from the January 2025 settlement, which included the $5 million penalty and a permanent injunction. The case originated from alleged false or misleading statements Gemini made to the CFTC in 2017 during a Bitcoin futures self-certification review.
Despite the ruling, Gemini has continued to build its regulated business, securing licenses for derivatives trading and expanding into prediction markets. The persistence of the settlement creates a compliance overhang for the exchange as it pursues new product approvals and licensing discussions.
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