A New York judge has postponed the trial in the case between the US Commodity Futures Trading Commission (CFTC) and Gemini Trust Company, pushing back its start date from January 13 to January 21.
The civil lawsuit, originally filed in June 2022, alleges GEMINI provided false or misleading information to the CFTC during its 2017 bid to offer Bitcoin futures contracts.
Judge Alvin Hellerstein released the new schedule in a filing dated Dec. 30, adding that “no further adjournments will be granted.” Although the six-day deadline was not explicitly explained, it places the trial under the new administration of President-elect Donald Trump, whose inauguration is scheduled for January 20. The change in leadership could influence the CFTC’s approach to Gemini and the broader crypto sector.
The CFTC’s initial complaint against Gemini sought penalties, restitution of allegedly ill-gotten gains, and injunctions to prevent future violations of the Commodity Exchange Act. The regulator accused Gemini of providing inaccurate statements to influence the market approval process for its Bitcoin futures contracts.
This delay comes at a critical time for the regulation of cryptocurrencies in the United States. The next session of Congress begins on January 3, and speculation is rife about changes at the CFTC. President-elect Trump is reportedly considering replacing CFTC Chairman Rostin Behnam, whose term runs until June 2026, with someone closer to the cryptocurrency industry.
Over the past year, the CFTC has been ramping up its crackdown, recovering more than $17 billion in monetary aid in fiscal year 2024, much of which is tied to cryptocurrency-related cases against companies like FTX, Celsius and Binance. Pending legislation could more precisely define the CFTC’s role in overseeing the cryptocurrency industry and change the power dynamic between the commission and the Securities and Exchange Commission (SEC).
GEMINI Earn previously announced that users would get $2.18 billion of their crypto assets back in-kind, meaning customers who lent a bitcoin would receive one in return. This distribution represents a 232% recovery from when withdrawals stopped in November 2022.
The news came after Genesis Global Trading reached a settlement with the New York Department of Financial Services (NYDFS), agreeing to pay an $8 million penalty and cease operations in New York. As part of the settlement, the US-focused crypto spot trading firm will relinquish its BitLicense, which it has held since 2018.
