News
Bitcoin Futures · CFTC · CME Group · Regulation
CME Group announced its plan to sue the Commodity Futures Trading Commission (CFTC) over the agency's approval of bitcoin perpetual futures for Kalshi, arguing these contracts are swaps, not futures, under the Dodd-Frank Act, setting up a direct legal confrontation.
Outgoing CME CEO Terrence Duffy stated the lawsuit would be filed immediately, targeting the CFTC's late May decision allowing prediction market platform Kalshi to offer the first U.S. domestic regulated bitcoin perpetual futures. The CFTC also cleared Coinbase to connect U.S. customers to offshore perpetual futures trading.
Perpetual futures, or "perps," lack an expiration date and use periodic funding payments, offering leverage up to 50-to-1. CFTC Chair Michael Selig defended the approvals, aiming to regulate a significant segment of crypto derivatives domestically, while a CFTC spokesperson dismissed CME's lawsuit as "frivolous." Duffy asserted CME's exclusive licenses on market benchmarks mean competing perpetual contracts would still route through CME.
This legal challenge coincides with a federal judge denying Polymarket's injunction against Michigan regulators, ruling sports prediction wagers are not swaps, further questioning the CFTC's jurisdictional scope. CME also announced Duffy's succession by Lynne Fitzpatrick as CEO in March 2027.
