CFTC asks judge to dismiss CME lawsuit over crypto perpetual futures
The CFTC has filed a motion to dismiss a lawsuit brought by CME Group, which challenged the regulator's decision to allow Kalshi to list crypto perpetual futures. The agency argues that CME lacks legal standing because it has not demonstrated concrete financial harm and that the lawsuit is an attempt to stifle market competition.
Why it matters
This case is a critical test for the regulatory classification of crypto derivatives, as it pits traditional financial giants against new market entrants and challenges the CFTC's authority to define the boundaries between futures and swaps.
The regulator called the dispute “much ado about nothing” and said CME lacks constitutional standing because it has not alleged a concrete financial loss, in a motion filed Wednesday .
The CFTC said the order CME is challenging allows any registered designated contract market, including CME, to list similarly structured products.
CME has also publicly said its customers have not asked for perpetual futures. Any harm caused by its decision not to offer the contracts is therefore self-inflicted, the CFTC argued.
A ruling in CME’s favor would not remove the competing products from the market, according to the agency. Kalshi and other designated contract markets could continue offering them as swaps, meaning reclassifying the contracts would not remedy CME’s alleged competitive injury.
The CFTC also said CME’s effort to protect itself from competition falls outside the interests the Commodity Exchange Act was designed to protect.
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