CFTC Seeks Dismissal of CME Lawsuit Over Crypto Perpetual Futures

The U.S. Commodity Futures Trading Commission has asked a federal court to dismiss a lawsuit filed by CME Group, arguing the world's largest derivatives marketplace lacks legal standing to challenge the agency's approval of cryptocurrency perpetual futures contracts. In a motion filed on September 2, the regulator contended that CME's claims of competitive injury are self-inflicted because the exchange itself could list similar products under the same regulatory framework it is contesting. The legal dispute stems from the CFTC's May 29 approval of Kalshi's Bitcoin perpetual contract, which allows the product to trade on the regulated KalshiEX platform under the futures framework. CME filed suit on June 18, arguing that perpetual contracts, which lack fixed expiration dates and use recurring funding payments to track asset prices, should be regulated as swaps rather than futures. The exchange claimed the approval gave newer venues an unfair competitive advantage and created an uneven regulatory landscape.