CFTC Seeks Dismissal of CME Crypto Futures Lawsuit

The US Commodity Futures Trading Commission (CFTC) has asked a federal court to dismiss CME Group's lawsuit challenging its treatment of cryptocurrency perpetual contracts as futures.

CME filed the case in June, arguing that the regulator's approval of Kalshi's Bitcoin perpetual contract and related policy statement gave newer exchanges an unfair competitive advantage by allowing them to offer perpetual contracts under the futures framework.

The CFTC argues that CME lacks standing because it can list comparable perpetual contracts on its exchange and any disadvantage arising from its decision not to do so is 'self-inflicted.'

In addition, the regulator says reclassifying perpetual contracts as swaps would not prevent rival venues from offering economically similar products to traders.