By CentBit.Online – Crypto & Blockchain Expert, Bangladesh
A New York federal judge has postponed the trial between the Commodity Futures Trading Commission (CFTC) and Gemini Trust Company, originally set to begin on January 13, 2024, to January 21, 2024.
Judge Alvin Hellerstein emphasized that “no further adjournments will be granted.” The delay pushes the trial into the new presidential administration, with President-elect Donald Trump set to take office on January 20, 2024.
Implications of the Delay
The trial’s timing could influence the regulatory landscape for cryptocurrency firms, as the new administration may introduce policy shifts. This case, initiated in June 2022, accuses Gemini of providing false or misleading information to the CFTC during its 2017 efforts to launch Bitcoin futures contracts.
The CFTC seeks financial penalties, disgorgement of ill-gotten gains, and measures to prevent future violations of the Commodity Exchange Act (CEA).
With a new Congress set to convene on January 3, 2024, pending legislation could redefine the roles of the CFTC and the Securities and Exchange Commission (SEC) in overseeing the cryptocurrency industry.
The CFTC’s current chairman, Rostin Behnam, whose term extends to 2026, might face replacement under the Trump administration, potentially altering the agency’s enforcement strategies.
CFTC’s Aggressive Crypto Enforcement
In its 2024 fiscal report, the CFTC disclosed $17 billion in monetary recoveries, primarily from enforcement actions against cryptocurrency firms like FTX, Celsius, and Binance.
These actions demonstrate the agency’s heightened focus on ensuring compliance in the crypto sector.
Gemini’s Global Expansion Efforts
Amid regulatory challenges in the US, Gemini has expanded its global footprint:
- In October 2024, Gemini secured in-principle approval from the Monetary Authority of Singapore (MAS), enabling it to offer cross-border money transfer and digital payment token services.
- Singapore represents Gemini’s second-largest market globally, trailing only the US.
- The company plans to establish Singapore as its Asia-Pacific hub, with regional operations driving growth across Asia.
Gemini’s Saad Ahmed, who oversees the Asia-Pacific region, emphasized Singapore’s strategic importance, noting, “We are building the required capabilities here to drive operations across the region.”
Licensing Milestones
- In 2022, Gemini received a licensing exemption from MAS and an in-principle approval to offer digital payment token services in Singapore.
- In January 2024, Gemini obtained a crypto license from France’s Autorité des marchés financiers (AMF), marking another milestone in its global expansion strategy.
Conclusion
The outcome of the CFTC-Gemini trial could have far-reaching implications for cryptocurrency regulations in the US. As Gemini continues its international expansion, the company balances regulatory pressures at home with opportunities abroad.
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