Regulators Under Fire as Gemini Accuses CFTC Nominee of Obstruction Tactics

The nomination of Kara Quintenz to serve as a commissioner of the Commodity Futures Trading Commission (CFTC) has recently come under scrutiny due to allegations of obstruction raised by the co-founders of cryptocurrency exchange Gemini. The claims, which surfaced in a public statement released by Gemini in early April 2025, assert that Quintenz, a former CFTC attorney and senior advisor, allegedly used her influence to delay regulatory responses to Gemini’s compliance efforts in 2021 and 2022 .

According to the Gemini founders, Cameron and Tyler Winklevoss, Quintenz’s actions during her time at the CFTC created an environment of uncertainty that hampered the company’s ability to secure timely approvals for critical business operations, including cross-border transactions and the launch of stablecoin offerings. The Winklevosses claim that these delays were not based on substantive legal concerns but rather on personal bias and favoritism toward industry competitors .

In a separate filing with the Senate Committee on Banking, Housing, and Urban Affairs, the Winklevosses provided internal CFTC communications and email exchanges that allegedly show Quintenz coordinating with external industry stakeholders to slow down Gemini’s regulatory progress. These documents reportedly include correspondence with representatives from several major crypto firms, some of which were not disclosed in initial filings with the Committee .

Quintenz, who has yet to respond publicly to the allegations, was confirmed in a key advisory role at the CFTC in 2021 under the Biden administration and was recently nominated to serve as a full commissioner by President Biden in March 2025. Her confirmation hearing is set for May 2025, and the allegations have already sparked bipartisan concern among several senators who have previously supported her nomination. The CFTC has not yet commented on the matter, but internal sources suggest the agency is conducting an internal review of the claims .

The controversy has broader implications for the CFTC’s oversight of the rapidly evolving crypto market. The agency has been under increasing pressure to modernize its regulatory framework to accommodate decentralized finance (DeFi) and digital assets while maintaining market integrity. Critics argue that the allegations against Quintenz could undermine the CFTC’s credibility and slow down much-needed reforms. Supporters, however, maintain that the agency must be cautious in its enforcement approach to avoid stifling innovation .

The Gemini co-founders have requested a full congressional investigation into the matter and have indicated they will pursue legal action if necessary. Meanwhile, their public statement has already drawn attention from several financial watchdog groups and advocacy organizations, which are calling for greater transparency in the regulatory process. The situation highlights the growing tension between traditional regulatory bodies and the fast-paced nature of the digital asset industry .