CME Sues CFTC Over Approval of Crypto Perpetual Futures

The lawsuit targets the commission and Chairman Michael Selig, arguing that the agency improperly categorized these new products as futures rather than swaps. Outgoing CME CEO Terrence Duffy maintains that the CFTC deviated from its historical approach and ignored established statutory definitions to clear platforms like Kalshi and Coinbase for trading. Since receiving approval, these perpetual contracts have moved rapidly into the mainstream, with Kalshi alone reporting over $5.5 billion in volume within weeks of launching products tied to Bitcoin, Ethereum, and XRP.

CME’s complaint suggests the regulator should have utilized formal rulemaking procedures before creating a new framework for these assets. In response, a CFTC spokesperson dismissed the litigation as a defensive move by an incumbent firm seeking to stifle competition and hinder the current administration’s pro-innovation agenda. Legal analysts note that the case faces a complex path; while the Supreme Court’s recent Loper Bright decision could limit judicial deference to agency interpretations, the CFTC retains broad discretion to classify novel financial products that were not explicitly addressed by Congress during the drafting of the Dodd-Frank Act.