US Commodity Futures Trading Commission Seeks to Withdraw Penalty Against Trump Donors’ Cryptocurrency Company
May 28, 2026 — The United States Commodity Futures Trading Commission (CFTC) has recently made an unusual legal move by asking a federal judge to vacate a penalty previously imposed on Gemini Trust Company, a cryptocurrency exchange operated by Tyler and Cameron Winklevoss—known donors to former President Donald Trump’s 2024 reelection campaign.
Background on the Penalty
The original penalty, enforced during the Biden administration, stemmed from allegations that Gemini had made false statements related to a bitcoin futures business the company sought to launch. In 2022, the CFTC charged Gemini with these violations, and the company agreed to settle by paying a $5 million fine just weeks before President Biden left office.
However, in a surprising reversal filed late Wednesday, the CFTC under its current leadership states that the original complaint was based in large part on a whistleblower report they now regard as lacking credibility. The agency contends that Gemini was not the wrongdoer but rather a victim of fraudulent activity.
Shift in Regulatory Approach
The CFTC’s renewed filing asserts that these revelations raise serious questions about the enforcement process followed in the case. More broadly, the agency points to this as a justification for its current, more permissive stance on cryptocurrency regulation – a notable shift from the previous administration’s stricter policies.
“This development highlights the need for a revised federal enforcement approach and updated standards, especially in the digital asset space,” the CFTC said in an official statement.
While the CFTC seeks to erase the settlement from Gemini’s record, it clarified that the $5 million penalty paid will not be refunded.
The Winklevoss Twins’ Political Involvement
Tyler and Cameron Winklevoss gained public attention years ago due to their legal dispute with Facebook founder Mark Zuckerberg, claiming he misappropriated their social network idea. More recently, the twins have become prominent figures within the cryptocurrency industry and vocal supporters of Donald Trump’s policies.
Ahead of the 2024 presidential election, the Winklevoss brothers attempted to contribute $1 million each in bitcoin to Trump’s campaign, but these donations were refunded for surpassing legal contribution limits. The twins later collectively donated over $1 million to Trump’s main super PAC, MAGA Inc., shortly before his inauguration in January 2025. ### Political Dynamics within the CFTC
The regulatory about-face coincides with notable political developments at the agency. Brian Quintenz, Trump’s original nominee to lead the CFTC, publicly accused the Winklevoss twins of lobbying the White House to block his appointment after he refused to commit to addressing the Gemini settlement under the Biden administration.
In September 2025, President Trump withdrew Quintenz’s nomination in favor of Michael Selig, who now serves as the CFTC Chair and has overseen the agency’s recent policy shift.
Conclusion
This episode reflects the evolving landscape of cryptocurrency regulation in the United States, highlighting how political ties and shifting enforcement philosophies can shape the regulatory environment. The CFTC’s attempt to undo a Biden-era penalty against Gemini underscores the complex interplay between emerging financial technologies and federal oversight, as well as the continuing influence of politically connected industry figures.
Report by Adam Cancryn, CNN. This article has been updated with additional information.
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