The U.S. Commodity Futures Trading Commission asked the U.S. District Court for the District of Columbia on September 2 to dismiss CME Group’s lawsuit challenging the regulator’s treatment of cryptocurrency perpetual contracts as futures.
In its motion, the CFTC argued that CME’s claims of competitive injury lack legal standing and substance, calling the case “much ado about nothing.” The agency said CME, as a designated contract market, can seek permission to list the same perpetual futures under the same process available to Kalshi. As a result, any alleged competitive disadvantage from not offering these products is “self-inflicted.”
The dispute began after the CFTC approved Kalshi’s Bitcoin perpetual contract, known as BTCPERP, on May 29. CME filed suit on June 18, arguing that perpetual contracts lack fixed expiration dates and should be classified as swaps under the Commodity Exchange Act and the Dodd-Frank Act, rather than as futures. The exchange sought to vacate the Kalshi approval and the CFTC’s broader policy statement allowing other designated contract markets to list similar products.
The CFTC also pointed to CME’s own trading data, noting that CME’s Bitcoin and Ether futures volumes in June and August exceeded their May levels. The regulator argued this undercuts the claim of concrete competitive loss. It further said that even if the court reclassified perpetual contracts as swaps, Kalshi and other venues could still offer economically similar products, meaning CME’s alleged injury would not necessarily be resolved.
The CFTC stated that Congress designed the Commodity Exchange Act around self-regulation, market integrity, and “responsible innovation and fair competition,” and that CME’s lawsuit “turns that purpose on its head.” The agency requested an oral hearing. CME’s opposition to the motion is due by October 2, and the court has not yet ruled on the dismissal request or the underlying classification question.
A final ruling could influence future applications for perpetual contracts tied to crypto assets, equities, or commodities, with Kalshi reportedly preparing additional products including a WTI crude oil perpetual.
