CFTC Seeks to Dismiss CME Lawsuit Over Kalshi Perpetual Futures Approval
The Commodity Futures Trading Commission (CFTC) has filed a motion to dismiss a lawsuit brought by the Chicago Mercantile Exchange (CME) over the approval of perpetual futures contracts tied to Bitcoin. The CFTC argues that CME lacks standing to sue, as it has failed to show actual financial harm or a specific competitive injury.
In June, the CFTC approved prediction-market platform Kalshi's perpetual futures contracts and issued a no-action position for similar products on cryptocurrency exchange Coinbase. CME had argued that CFTC Chair Michael Selig acted unilaterally without a full panel of five commissioners and that treating 'futures' as 'swaps' violated the Commodity Exchange Act.
The CFTC countered that any CFTC-registered exchange can list perpetual futures on digital assets, and that CME's claimed competitive disadvantage is self-inflicted if it chooses not to list perpetual futures alongside its fixed-expiration products. The CFTC also described the lawsuit as 'mucho ruido' (much noise) with little substance.
The case centers around the CFTC's May 29 approval of Kalshi's Bitcoin perpetual contract under Regulation 40.3, and CME's June 18 lawsuit challenging that approval and a policy statement allowing other DCMs to list similar products.