The Commodity Futures Trading Commission has asked a federal court to dismiss CME Group’s lawsuit over the regulatory approval process for crypto perpetual futures, intensifying a procedural fight that could determine how US digital asset derivatives are classified and approved.
In the latest filing in CME v. Selig before Judge Colleen Kollar-Kotelly (1:26-cv-02157), the CFTC argued that CME has not plausibly alleged an actual or imminent increase in competition from the regulator’s approval of rival perpetual contracts. The agency first moved to dismiss on September 2, 2026, and its October 16 filing challenged CME’s standing. 'CME must plausibly allege an actual or imminent increase in competition,' the CFTC wrote. 'CME has not even done that.'
The regulator pointed to remarks by CME Chairman Terence Duffy on July 22, 2026, in which he said clients showed no demand for the perpetuals and that they could not serve as an alternative for firms trying to hedge positions. The CFTC stated: 'CME cannot have it one way with the court and another way with the investing public on earnings calls.'
CME filed the lawsuit on June 18, 2026, following the CFTC’s May 29 approval of KalshiEX’s Bitcoin perpetual contract, BTCPERP, which came one day after the filing. CME argues that perpetual futures are swaps, not futures, under the Dodd-Frank Act and Commodity Exchange Act because they have no expiration date. That classification carries significant consequences for margin requirements, registration rules, and tax treatment. CME also objected to the CFTC approving the contract without public comment and then allowing other exchanges to self-certify similar products.
At the time, Michael Selig was the only confirmed CFTC commissioner. He dismissed CME’s objections as predictable resistance from an incumbent player.
A dismissal would not resolve the core legal question of whether perpetuals are swaps or futures. It would allow the CFTC to continue its case-by-case approval practice without a court ruling on product classification. TD Cowen analyst Jaret Seiberg said growth in perpetuals during the litigation 'could create complications in trying to unwind this market if the CME prevails.' If CME ultimately wins, US perpetual markets could be disrupted; a victory for the CFTC could reinforce the futures classification.
The scale of the market underscores the stakes. CME reported average daily cryptocurrency volume of 174,000 contracts in September 2026, worth $8.6 billion in notional value. CryptoQuant’s 2026 report estimated Binance’s 2025 perpetual volume at roughly $25 trillion, up 20%, while perpetuals account for 70% to 90% of trading at several major exchanges.
For Bitcoin derivatives specifically, the case carries structural relevance. Bitcoin perpetual futures dominate global crypto derivatives volume, and the outcome could affect market depth, price discovery, and the competitive position of US-regulated venues relative to offshore platforms. If the court grants dismissal, the CFTC retains its approval decision without immediate judicial interference. If the court denies dismissal, CME gains a forum to contest the approval process on the merits.
