CME Challenges CFTC in Crypto Perpetual Futures Legal Battle

CME Group is pushing back against the Commodity Futures Trading Commission’s (CFTC) attempt to dismiss its lawsuit challenging the regulator’s approval of cryptocurrency perpetual futures contracts. The exchange filed its opposition on October 2 in federal court in Washington, escalating a dispute that began after the CFTC approved Kalshi’s Bitcoin perpetual futures contract in May. CME argues that these contracts should be classified as swaps rather than futures due to their lack of expiration dates and delivery obligations, as well as the funding payments exchanged between traders.

The CFTC moved to dismiss the lawsuit on September 2, arguing that CME had not demonstrated concrete financial harm or met constitutional standing requirements. The agency described the lawsuit as “much ado about nothing,” noting that CME itself could seek approval for similar products. The CFTC also highlighted that CME’s customers had not requested perpetual futures, suggesting any harm was partly self-inflicted. Additionally, the regulator questioned whether CME’s interests fall within the protections of the Commodity Exchange Act.

Hyperliquid Policy Center CEO Jake Chervinsky criticized CME’s latest filing, stating that the exchange failed to adequately address key arguments concerning competitor standing and the Commodity Exchange Act’s zone of interests. The court has yet to rule on the dismissal request, with the CFTC expected to reply by October 16. Meanwhile, Judge Colleen Kollar-Kotelly rejected the CFTC’s request to withhold the administrative record, stating it could contain evidence of the competitive injury CME claims.