The trial between the United States Commodity Futures Trading Commission (CFTC) and Gemini Trust Company has been delayed until January 21, potentially influencing the regulatory landscape for cryptocurrency under a new presidential administration.
Trial Delay Amid Shifting Political Context
On December 30, Judge Alvin Hellerstein of the U.S. District Court for the Southern District of New York postponed the trial’s start date from January 13 to January 21. The judge emphasized that “no further adjournments will be granted.”
The civil trial, originally scheduled during a transition in U.S. presidential administrations, raises questions about how a new administration might affect the CFTC’s stance on crypto firms like Gemini. Notably, President-elect Donald Trump’s inauguration is slated for January 20, a day before the new trial date.
Background on the CFTC v. Gemini Case
The CFTC filed its lawsuit against Gemini in June 2022, alleging that the firm provided misleading statements during its 2017 effort to offer Bitcoin futures contracts. The regulator is seeking remedies including:
- Disgorgement of Ill-Gotten Gains: Repayment of profits made through alleged misconduct.
- Civil Monetary Penalties: Financial fines for regulatory violations.
- Injunctions: Prohibitions against further breaches of the Commodity Exchange Act.
This trial is among the CFTC’s broader enforcement efforts against crypto firms, including actions against FTX, Celsius, and Binance. The commission reported recovering over $17 billion in monetary relief for the 2024 fiscal year, driven largely by crypto-related enforcement cases.
Potential Changes in Crypto Regulation
The timing of the trial under a new administration adds speculation about potential shifts in U.S. crypto policy. The CFTC’s five commissioners, serving staggered five-year terms, may gain additional authority over crypto regulations if lawmakers enact new legislation clarifying the roles of the CFTC and the SEC.
President-elect Trump has reportedly considered replacing current CFTC Chairman Rostin Behnam—whose term extends until June 2026—with someone more favorable to the crypto industry. This could signal a shift in the regulatory tone and impact ongoing and future cases against crypto companies.