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The CFTC asked a District of Columbia federal court to dismiss CME Group's lawsuit over the agency's approval of Kalshi's Bitcoin perpetual futures contract. In a Wednesday motion, the commission called the case “much ado about nothing” and said CME had not shown a plausible competitive injury. CME sued on June 18 after the CFTC's May 29 order also allowed other designated contract markets to list similar contracts as futures.
Why it matters
CME argues the products should be classified as swaps under the Commodity Exchange Act and Dodd-Frank, saying the CFTC opened its retail futures market to new entrants without following the required rules. The CFTC says CME can list the same contracts and has publicly said its customers are not asking for them.
The agency also says reclassification would not cure CME's alleged injury because Kalshi and other designated contract markets could offer the products as swaps. It says the regulatory and tax differences are not significant enough to support CME's claim, while framing the law's purpose as self-regulation, market integrity, responsible innovation and fair competition.
Market impact
The motion cites CME monthly volume figures showing Bitcoin and Ether futures were higher in June and August than in May, the month of the order. The CFTC uses that comparison to call any competitive harm self-inflicted, while the court must still decide whether CME has standing and whether its claims have substance.
The commission requested an oral hearing, and CME's opposition is due Oct. 2. The ruling will shape whether designated contract markets can expand crypto perpetuals under the futures framework, a key test for competition and product innovation in crypto derivatives.
Frequently asked questions
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Why does CME say the contracts should be classified as swaps?
CME argues the perpetual products should fall under the swaps framework in the Commodity Exchange Act and Dodd-Frank, rather than the futures framework used in the CFTC's approval.
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How does the CFTC challenge CME's claim of competitive injury?
The CFTC says CME can list the same perpetual futures and has publicly said its customers are not asking for them. It calls any alleged harm self-inflicted.
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What did the CFTC's May 29 order allow?
It approved Kalshi's Bitcoin perpetual futures contract and said other designated contract markets could list similar contracts as futures.
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What CME volume figures did the CFTC cite?
The motion cites monthly figures showing CME's Bitcoin and Ether futures volumes were higher in June and August than in May, when the order was issued.
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When is CME's opposition to the dismissal motion due?
CME's opposition is due Oct. 2. The CFTC has also requested an oral hearing.
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