Hold onto your hats because the crypto world just got a little spicier! In a recent twist, Gemini Trust Co. has agreed to shell out a cool $5 million to settle a lawsuit with the Commodity Futures Trading Commission (CFTC). The drama kicked off when the CFTC accused Gemini of not being entirely truthful about how they planned to keep Bitcoin prices in check while trying to roll out the first U.S.-regulated Bitcoin futures contract.
But wait, there's more! This juicy settlement doesn’t mean Gemini is admitting to any funny business. Nope, they’re neither confirming nor denying the allegations, simply putting the whole brouhaha to bed without the courtroom theatrics. Originally, a trial was penciled in for January, but now that’s all history.
Flashback to 2022, when the CFTC first played hardball, claiming Gemini had been a bit too creative with their descriptions of Bitcoin price manipulation safeguards during 2017. The CFTC suggested that Gemini’s safeguards were more smoke and mirrors than solid strategy. However, Gemini stood firm, insisting that their Bitcoin futures contract was as sound as a dollar bill and harmed nary an investor.
In their defense, Gemini said, “Hey, the reference price was spot-on, nobody got hurt, manipulation? What manipulation?” And to back up their talk, they handed over laptops from two former execs during a related criminal probe, which ended without a whisper of charges. But the civil case kept ticking along, culminating in this $5 million handshake.
This saga is just one of many under the Joe Biden administration’s eagle-eyed watch over the crypto space. But change might be afoot! With Donald Trump eyeing a second term, crypto fans are crossing their fingers for a more relaxed regulatory vibe.
Ripple’s head honcho, Brad Garlinghouse, is already sensing a “Trump effect.” He’s pointed out that Ripple is now hiring like crazy in the U.S., a major pivot after dodging regulatory storms abroad. In fact, they’ve inked more U.S. deals in the last stretch of 2024 than in the previous half-year combined.
And the market? It's buzzing! Trump-themed meme coins are on a tear, scoring impressive double- and triple-digit gains as investors get giddy about potential crypto-friendly policies. Buckle up, folks, because the crypto rollercoaster never stops!
