CFTC reverses course: says it shouldn't have sued Gemini!

The Commodity Futures Trading Commission has taken the rare step of joining a motion to vacate its own prior judgment against Gemini, publicly acknowledging that the lawsuit against the crypto exchange should not have been brought in the first place. The move marks a significant shift in the regulator's posture toward the digital asset industry.

The CFTC's willingness to unwind its own enforcement action is a meaningful data point for the broader crypto regulatory landscape. It signals that the new leadership at the agency is actively reviewing the litigation posture inherited from the prior administration — and in at least this case, finding it wanting.

For Gemini, the development clears a legal overhang that had shadowed the exchange for years.