CFTC Slams CME Suit Over Kalshi's Bitcoin Perpetual Futures Contract
The CFTC is fighting back against CME Group's lawsuit over its approval of Kalshi's Bitcoin perpetual futures contract. The regulator called CME's suit 'frivolous' and accused it of choosing litigation over competition.
The CFTC approved the contract, known as BTCPERP, on May 29 through its self-certification process, which allowed Kalshi to receive approval in just one day. The approval came with a policy statement enabling similar crypto perpetuals to be cleared and margin requirements to be set by exchanges.
CME Group argues that perpetual contracts should be categorized as swaps under the Dodd-Frank Act rather than futures, which would subject them to stricter regulatory rules. However, the CFTC has framed its approval of BTCPERP as part of a broader effort to bring crypto derivatives trading onshore and promote innovation in the space.
Kalshi reported trading volumes exceeding $1 billion across its perpetual contracts within a week of launching BTCPERP. The regulator's dismissal motion has not yet been resolved, but it is clear that the classification fight over futures versus swaps matters substantially for the US derivatives market.