CFTC News: CME Fights Bid to Dismiss Crypto Perpetuals Suit

Approfondimenti Chiave

• CFTC news focused on CME opposing dismissal of its crypto perpetual-futures lawsuit.
• Hyperliquid Policy Center said CME left key standing and zone-of-interests arguments unanswered.
• The CFTC argues CME has not shown concrete competitive harm that a court ruling would remedy.

CME has opposed the Commodity Futures Trading Commission’s attempt to dismiss its lawsuit over U.S. cryptocurrency perpetual futures.

The exchange filed its response on Oct. 2 in federal court in Washington. The dispute concerns the CFTC’s May approval of Kalshi’s Bitcoin perpetual futures contract.

Hyperliquid Policy Center Chief Executive Officer Jake Chervinsky criticized CME’s latest filing. He said the exchange did not adequately answer arguments concerning competitor standing and the Commodity Exchange Act’s zone of interests.

CFTC News Focuses on CME Opposition to Dismissal

The CFTC moved to dismiss CME’s lawsuit on Sept. 2.

The agency argued that CME lacked Article III standing because it had not shown a concrete competitive injury caused by the regulator’s decision.

The CFTC characterized the lawsuit as “much ado about nothing.”

Its filing argued that CME itself remains free to seek approval for similar crypto perpetual futures.

The agency also cited CME’s previous public statements that its own customers had not requested those products.

From the CFTC’s perspective, any harm arising from CME’s decision not to list perpetuals was therefore partly self-inflicted.

CME disputed the agency’s standing analysis in its Oct. 2 opposition.

The court has not yet ruled on the dismissal request.

CFTC News Focuses on CME’s Opposition to Dismissal

The latest filing on CFTC news follows the CFTC’s request to dismiss CME’s challenge because the exchange allegedly cannot demonstrate concrete financial harm.

The regulator described the dispute as “much ado about nothing” while questioning whether CME meets constitutional standing requirements.

Its motion also challenged whether a ruling for CME would remedy the competitive injury the exchange alleges.

Specifically, the agency argued that Kalshi and other designated contract markets could continue offering the disputed products as swaps.

Therefore, reclassifying those contracts would not necessarily remove them from the market, according to the CFTC. The regulator cited that possibility in arguing that CME’s requested relief would not resolve its claimed harm.

The agency also pointed out that its approval permits any registered designated contract market, including CME, to list similarly structured contracts.

Meanwhile, CME has publicly said its customers have not requested perpetual futures. The CFTC thus characterized any injury stemming from CME’s decision against offering those products as self-inflicted.

Separately, the regulator questioned whether CME’s interests fall within those protected by the Commodity Exchange Act.

It argued that shielding the exchange from competition falls outside the law’s intended protections. Chervinsky’s criticism specifically identified the zone-of-interests issue among the arguments he said CME left unanswered.

CME Disputes Classification of Kalshi’s Perpetual Futures

CME brought its lawsuit in June after the CFTC approved Kalshi’s BTCPERP contract as a futures product.

In addition to CFTC news, CME argues that contracts with those features meet the legal definition of swaps rather than futures.

Its challenge focuses on the absence of expiration dates and delivery obligations, as well as the funding payments exchanged between traders.

The exchange also accused the CFTC of failing to explain its departure from earlier enforcement cases classifying crypto perpetuals as swaps.

The May 29 approval also covers similarly structured perpetual contracts linked to other digital commodities.

Those commodities must have deep, active and continuous spot markets. By contrast, an accompanying policy statement requires individual review for perpetual contracts involving other asset classes.

Judge Rejects Request to Withhold Administrative Record

Earlier, Judge Colleen Kollar-Kotelly rejected the CFTC’s request to withhold the administrative record while its dismissal motion remained pending.

She said the record could contain evidence of the competitive injury CME claims. The judge also ordered both parties to propose a combined briefing schedule by September 4.

CME’s Friday opposition responds to the agency’s effort to end the case through dismissal. Chervinsky has questioned that response, citing the CFTC’s expected October 16 reply.

This article is for informational purposes only and does not constitute financial, investment or legal advice. Court filings reflect the parties’ arguments and do not establish final legal conclusions.

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