CFTC Seeks Dismissal of CME Lawsuit Over Bitcoin Perpetuals

The US Commodity Futures Trading Commission is pushing back against CME Group. On Wednesday, the agency asked a federal court to throw out CME's lawsuit over approved bitcoin perpetual contracts, calling the legal challenge much ado about nothing.

The dispute centers on the regulator's decision to let prediction market platform Kalshi list bitcoin perpetual futures. CME sued in June, arguing these contracts act more like swaps than futures because of their recurring funding payments. However, the regulator argues that CME has not suffered any actual business harm and therefore has no standing to sue.

To back up its point, the CFTC noted that CME can easily list the same products if it wants to, though CME's management has admitted customers are not even asking for them. On top of that, CME's own monthly trading data shows that its bitcoin and ether futures volumes actually grew after Kalshi's contracts were approved.

The court fight is a major talking point in the crypto industry because how these contracts are classified shapes how fast onshore perpetuals can expand. For now, the next major deadline is October 2, when CME is expected to file its formal opposition to the dismiss motion.