CME Challenges CFTC in Crypto Perpetual Futures Legal Battle

CME Group has opposed the Commodity Futures Trading Commission’s (CFTC) attempt to dismiss its lawsuit challenging the regulator’s approval of crypto perpetual futures contracts. The dispute centers on the CFTC’s May decision to allow Kalshi to offer its Bitcoin perpetual futures contract, which CME argues should be classified as swaps rather than futures due to their lack of expiration dates and delivery obligations.

The CFTC moved to dismiss the lawsuit on September 2, arguing that CME had not demonstrated concrete financial harm. The agency characterized the lawsuit as “much ado about nothing” and noted that CME itself could seek approval for similar products. The CFTC also pointed out that CME’s customers had not requested perpetual futures, suggesting any harm was self-inflicted.

In its October 2 response, CME disputed the CFTC’s standing analysis and argued that the regulator had failed to address key arguments concerning competitor standing and the Commodity Exchange Act’s zone of interests. Jake Chervinsky, CEO of Hyperliquid Policy Center, criticized CME’s filing for not adequately responding to these points. The court has yet to rule on the dismissal request.

CME’s lawsuit, filed in June, also accused the CFTC of deviating from earlier enforcement cases that classified crypto perpetuals as swaps. The exchange contends that the funding payments exchanged between traders further support the classification of these contracts as swaps. Meanwhile, Judge Colleen Kollar-Kotelly rejected the CFTC’s request to withhold the administrative record, stating it could contain evidence of the competitive injury claimed by CME.