CFTC Seeks to Dismiss CME Lawsuit Over Crypto Perpetual Futures Treatment
The US Commodity Futures Trading Commission (CFTC) has filed to dismiss a lawsuit brought by the Chicago Mercantile Exchange (CME) Group. The CFTC claims that the group lacks standing in its complaint, arguing that any financial injury would be hypothetical and not concrete.
The motion was filed on Wednesday in the US District Court for the District of Columbia. It references a June lawsuit by CME against the CFTC, which claimed that the regulator had unilaterally acted without a full panel of five commissioners to treat cryptocurrency 'futures' as 'swaps' with expiration dates.
The CFTC says that this treatment does not go against Congress. It also claims that any CFTC-registered exchange can list perpetual futures on digital assets, citing the CME's own ability to do so. The motion states: '[...] CME has not alleged, and cannot plausibly allege, that it suffered a financial injury from the CFTC’s authorization of perpetual futures contracts.'
A spokesperson for the CFTC called the initial lawsuit 'frivolous' and accused CME of engaging in 'lawfare'. The agency requested an oral hearing to address the motion, which has not been scheduled as of Thursday.