Last week, Gemini Trust accused the Commodity Futures Trading Commission (CFTC) staff of conducting a "trophy-hunting lawfare" campaign. The crypto exchange alleges the CFTC has been weaponizing the Commodity Exchange Act (CEA) against them for over seven years. This news comes from a letter sent to the CFTC's Inspector General on June 13.
The letter specifically accuses the Division of Enforcement (DOE) staff of unfairly using the CEA. Gemini claims the DOE brought "dubious false statements charges" and took legal positions that contradict due process. In 2022, the CFTC sued Gemini, alleging false statements regarding Bitcoin (BTC) price manipulation prevention in 2017.
Gemini agreed to pay $5 million to the CFTC in January 2025 to resolve the allegations. They claim they settled not because they were guilty, but because they had no other choice. Gemini argues the DOE's actions were driven by a desire to advance careers, not protect markets. The company also stated that the DOE ignored the fact that Gemini was a victim of fraudulent activity.
Gemini believes the DOE is "out of control" with a "toxic" philosophy. They point to public statements from CFTC acting chair Caroline Pham, who criticized the previous administration's "regulation by enforcement" approach. Pham stated the CFTC will focus on catching bad actors and preventing fraud.
Despite a new pro-innovation approach, regulations won't be easy for the crypto industry. Gemini concluded that the CFTC's transformation requires introspection and long-term commitment. They offered to assist the Commission and Inspector General.