CME Fights CFTC’s Bid to Dismiss Crypto Perpetuals Lawsuit

CME Group has strongly opposed the Commodity Futures Trading Commission’s (CFTC) attempt to dismiss its lawsuit challenging the regulator’s approval of Kalshi’s Bitcoin perpetual futures contract. In a filing submitted on October 2 in federal court, CME argued that the CFTC failed to address key legal arguments related to competitor standing and the Commodity Exchange Act’s zone of interests. The exchange contends that the CFTC’s May approval of Kalshi’s BTCPERP contract misclassified it as a futures product when it should be treated as a swap.

The CFTC had sought dismissal of the lawsuit, arguing that CME lacked standing because it did not demonstrate concrete competitive harm. The regulator described the dispute as “much ado about nothing,” pointing out that CME itself could seek approval for similar products and that its customers had not requested perpetual futures. The CFTC also claimed that reclassifying the contracts would not remove them from the market, as other designated contract markets could continue offering them as swaps.

Jake Chervinsky, CEO of Hyperliquid Policy Center, criticized CME’s latest filing, stating that the exchange did not adequately respond to arguments concerning competitor standing and the Commodity Exchange Act’s zone of interests. The court has not yet ruled on the dismissal request, with the CFTC expected to reply by October 16. Earlier, 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.

CME’s lawsuit, filed in June, argues that perpetual futures contracts without expiration dates or delivery obligations should be classified as swaps. The exchange also accused the CFTC of deviating from earlier enforcement cases that classified similar contracts as swaps. The dispute underscores ongoing regulatory uncertainty surrounding crypto derivatives products in the United States.