CFTC moves to dismiss CME lawsuit over crypto perpetual futures

The regulatory body contends that CME’s claims of competitive disadvantage are essentially self-inflicted, noting that the exchange possesses the same capacity to list comparable perpetual futures as its rival, Kalshi. According to the CFTC, the exchange failed to demonstrate a concrete injury linked to the agency’s actions, pointing to the fact that CME’s Bitcoin and Ether futures volumes actually increased in June and August following the initial approval of the Kalshi contract in May.

Beyond the question of standing, the regulator argues that even if the court were to reclassify perpetual contracts as swaps, competing venues would likely continue to offer economically similar products, leaving CME’s alleged competitive issues unresolved. The core of the dispute centers on whether perpetual contracts, which lack fixed expiration dates, should be regulated as futures or swaps under the Commodity Exchange Act. While CME argues that the lack of expiration necessitates a swap classification, the CFTC maintains that its oversight is consistent with current law. CME is required to file its formal response to the dismissal motion by October 2, setting the stage for a potential procedural ruling that could halt the challenge before the court reaches the underlying merits of the product classification.