US Judge Rejects Gemini and CFTC Bid to Vacate Rp81 Billion Fine: Crypto-Friendly Regulation Does Not Apply Retroactively

Gemini's effort to clear its legal record in the United States has hit a dead end. Federal Judge Alvin Hellerstein rejected an unusual joint request by the crypto exchange and the Commodity Futures Trading Commission (CFTC) to vacate a USD5 million settlement (around Rp81 billion). The rejection was issued on Thursday, even though the CFTC itself had stated that the case should not have needed to go to court.

In his ruling, Hellerstein stressed that the CFTC's change of position was not sufficient grounds to annul the agreement Gemini signed in January 2025. He also dismissed Gemini's argument that it had been forced by the regulator to accept the settlement. The decision sets an important precedent: a more accommodating approach to crypto assets in Washington D.C. does not apply retroactively.

Gemini, founded by Cameron and Tyler Winklevoss, has paid the USD5 million fine. The company also remains bound by a court order barring it from misleading the CFTC or publicly denying the findings in the settlement. In other words, even as the regulatory climate in the US begins to soften, the legal consequences of past disputes remain attached.

The case began with the CFTC's 2023 lawsuit. The regulator accused Gemini of providing misleading information during its review of a bitcoin futures contract proposal in 2017. Gemini chose to settle the case three weeks before trial began, without admitting or denying the allegations. In his reasoning, Hellerstein wrote, "Gemini litigated for roughly three years, and then, notwithstanding the facts that preceded it, made a measured decision to settle shortly before trial."

The decision comes amid Gemini's effort to refocus its business on the US market. Earlier this year, the company announced plans to exit the UK, the European Union, and Australia, and to cut 25% of its workforce. The move was taken to redirect resources to the US market and prediction markets. Gemini said it will continue operating in Singapore. However, its US expansion must now proceed alongside the 2025 settlement terms, which cannot be revoked.

For crypto industry players, the ruling underscores that a change in a regulator's stance does not automatically erase legal history. Although the CFTC under its current leadership appears friendlier, the court still adheres to the principle of legal certainty and does not automatically vacate agreements approved by the parties. Gemini can still launch new products and operate in the US, but the shadow of the old settlement will continue to hang over its business maneuvers.

Going forward, the question is how far courts will accommodate shifts in a regulator's direction in similar cases. If this precedent is followed, other crypto companies that have settled cases with regulators may not be able to expect that friendlier policies will erase their black marks. Instead, they must learn to live with legal consequences that are already final, while still looking for openings to grow in an increasingly competitive market.