TLDR
- The CFTC filed a motion on Sept. 2 asking a federal court to dismiss CME Group’s lawsuit over Bitcoin perpetual futures.
- The agency says CME lacks legal standing because it can list the same type of contract itself.
- CME argues Kalshi’s Bitcoin perpetual contract should be classified as a swap, not a futures contract.
- The CFTC says CME’s Bitcoin and Ether futures volumes rose in June and August compared with May.
- CME must respond to the dismissal motion by Oct. 2.
The U.S. Commodity Futures Trading Commission asked a federal court on Sept. 2 to dismiss a lawsuit filed by CME Group. The case involves how regulators treat Bitcoin perpetual futures contracts.
CME sued the CFTC in June after the agency approved Kalshi’s Bitcoin perpetual contract in May. CME wants the court to overturn that approval.
The CFTC’s motion argues that CME does not have legal standing to bring the case. The agency says CME can list the same type of contract itself.
CME claims the CFTC’s approval gave newer exchanges an advantage. The company says perpetual contracts should be regulated as swaps, not futures.
The CFTC disagrees with that argument. It says a futures contract does not need a fixed expiration date under current law.
CME Says Contracts Are Swaps
Perpetual contracts let traders hold price exposure without an expiration date. They use funding payments to keep the contract price close to the asset price.
CME argues this structure fits the legal definition of a swap under the Dodd-Frank Act. Traditional futures usually have set expiration and settlement dates.
The CFTC rejects that view. The agency approved Kalshi’s BTCPERP contract through a formal review process required for new products.
CFTC Chair Michael Selig has defended the approval. He said the contract remains subject to standard leverage, margin, and customer protection rules.
CME CEO Terry Duffy has criticized the approval process. He has said perpetual contracts could lead to excessive speculation.
Kalshi disagrees with that criticism. The company has said the lawsuit is an attempt to limit competition.
Case Timeline and Next Steps
The CFTC pointed to CME’s own trading data in its filing. Bitcoin and Ether futures volume on CME rose in June and August compared with May.
The agency said any competitive harm to CME is self inflicted, since the company chose not to list similar contracts. It also requested an oral hearing on the motion.
Even if the court agrees with CME on classification, the CFTC said other exchanges could still offer similar products under swap rules. That would not remove the competition CME says it faces.
CME must file its response to the dismissal motion by Oct. 2. The court has not ruled on the motion or on how perpetual contracts should be classified.
Kalshi’s Bitcoin perpetual contract remains available for trading while the case continues. The company is reportedly preparing more perpetual contracts, including one tied to crude oil.
