CFTC Seeks Dismissal of Lawsuit Against CME Over Crypto Futures Contracts
The Commodity Futures Trading Commission (CFTC) has filed to dismiss a lawsuit against the Chicago Mercantile Exchange (CME) over its cryptocurrency perpetual futures contracts. The CFTC, which regulates derivatives trading in the US, had initially opposed the introduction of these contracts due to concerns about market manipulation and lack of transparency.
In 2022, the CME launched its crypto perpetual futures products, which allow traders to bet on the future price of Bitcoin without actually holding any coins. The move was seen as a significant step towards mainstream adoption of cryptocurrencies in traditional finance.
The CFTC's decision to file for dismissal comes after a court ruling earlier this year that allowed the CME to continue offering its crypto perpetual futures contracts while the lawsuit is pending. The regulator has argued that these contracts are not securities and therefore fall outside of their jurisdiction.