CME vs. CFTC: Regulators Clash Over Onchain Perpetual Futures

The CME (Chicago Mercantile Exchange) and the CFTC (Commodity Futures Trading Commission) have been locked in a battle over onchain perpetual futures. The conflict revolves around the definition of these products, which combine elements of futures contracts and spot markets.

Onchain perpetual futures allow users to trade cryptocurrencies without taking physical possession of them. This has raised concerns among regulators, who fear that these products may be used for market manipulation or other illicit activities.

The CME has been pushing the CFTC to approve onchain perpetual futures as legitimate financial instruments. However, the CFTC has expressed reservations about these products, citing concerns over their potential impact on market stability and investor protection.