US District Judge Alvin Hellerstein has rejected a joint motion by Gemini and the Commodity Futures Trading Commission seeking to vacate a consent judgment entered in January 2025.
The settlement stemmed from allegations that Gemini misled the CFTC during its review of a proposed Bitcoin futures product in 2017. Under the agreement, Gemini paid a $5 million penalty and accepted a permanent injunction.
The CFTC reconsidered the original enforcement case as its digital asset priorities evolved. The regulator and Gemini then jointly asked the court to overturn the settlement, an unusual situation in which both parties sought relief rather than disputing the regulator's allegations.
However, the judge determined that a change in enforcement policy does not automatically erase a final court order. The arguments presented did not meet the legal standards for reopening the settlement.
The immediate impact on Gemini is limited—the settlement remains in effect and no new fine has been imposed. The broader significance lies in the principle that courts retain control of their judgments regardless of shifts in a regulatory agency's stance.
The decision carries implications for other cryptocurrency businesses. It underscores that companies cannot assume previously approved settlements will be overturned simply because the federal regulatory environment has become more accommodating.
