The influence of the cryptocurrency circle on U.S. regulation has become so significant that it has forced the CFTC nominee to "publicly complain."
In recent days, Brian Quintenz, the U.S. CFTC chairman nominee nominated by Trump, publicly accused Winklevoss brothers, founders of the Gemini cryptocurrency exchange, of interfering with his nomination process, stating that the two had contacted the president to request a suspension of his nomination, escalating personal grievances into an event that could affect the appointment of regulatory agency leadership. Gemini was previously fined $5 million by the agency for false statements related to Bitcoin futures contracts
A disagreement over regulatory enforcement has evolved into a direct confrontation between the cryptocurrency industry and U.S. regulatory personnel appointments.
On Wednesday, September 10, Brian Quintenz, the nominee for chairman of the U.S. Commodity Futures Trading Commission (CFTC) appointed by President Trump, publicly accused the founders of cryptocurrency exchange Gemini, the Winklevoss brothers, of intervening in his nomination confirmation process.
That afternoon, Quintenz posted several tweets on social media platform X, stating that the Winklevoss brothers had contacted Trump to request a suspension of his CFTC chairman nomination. He publicly shared a screenshot of a conversation he had with the brothers on the encrypted messaging platform Signal in July as evidence for his accusations.
The conversation shows that Tyler Winklevoss shared a complaint letter addressed to the CFTC Inspector General with Quintenz, criticizing the agency's enforcement actions when it sued Gemini in 2022. When the Winklevoss brothers asked Quintenz to respond to their accusations, he refused to make a clear statement.
Quintenz wrote in his tweet, "To my knowledge, after this conversation, they contacted the president to request a suspension of my confirmation process." He stated that although the Winklevoss brothers raised other concerns to Trump, the president "may have been misled."
In the conversation, Tyler Winklevoss expressed disappointment and surprise at Quintenz's lack of understanding regarding the relevant complaints and stated he was willing to raise the issue directly with the president.
Quintenz was nominated by Trump to serve as CFTC chairman in February of this year. This controversy stems from the CFTC's enforcement lawsuit against Gemini in 2022, accusing the exchange of making false or misleading statements regarding Bitcoin futures contracts. The case ultimately ended in a settlement, with Gemini being fined $5 million.
The Winklevoss brothers have long expressed dissatisfaction with this fine. Notably, Gemini plans to conduct its initial public offering on Thursday.
Major Overhaul of CFTC Enforcement Division
According to sources cited by the Financial Times, the CFTC has fired, demoted, and forced several personnel in its enforcement division to leave in recent months, including multiple officials responsible for the Gemini case.
Reportedly, the dismissed senior officials include Manal Sultan and Robert Howell, deputy directors of the enforcement division, as well as chief litigation attorneys Alejandra de Urioste and Brent Tomer. These officials had led the enforcement case against Gemini in 2022.
Sources revealed that some employees received 60-day termination notices in July and will officially leave in the coming weeks, while others have been reassigned to non-enforcement positions In response, the CFTC stated that the layoffs are part of a restructuring effort aimed at reducing unnecessary reporting layers and freeing up personnel for new departments. However, the agency did not comment on specific individuals or cases
