CFTC Seeks to Block CME's Lawsuit Against Kalshi's Bitcoin Perpetual Contract

The Commodity Futures Trading Commission (CFTC) has filed a motion to dismiss a lawsuit by the Chicago Mercantile Exchange (CME) against Kalshi's Bitcoin perpetual contract. The CFTC argues that CME did not demonstrate harm that the court can remedy, and that the exchange can launch a comparable digital commodity product with a similar structure.

The case revolves around whether a contract without a fixed expiration falls under the U.S. futures regime and could affect this regulated market. The CFTC approved KalshiEX's Bitcoin perpetual contracts and associated policy statement on May 29, and CME filed its lawsuit on June 18 to overturn this approval.

Coinbase has already introduced perpetual-style futures with 24/7 trading linked to Bitcoin, Ethereum, XRP, and Solana. The company describes these contracts as products with a five-year expiration.