The Commodity Futures Trading Commission (CFTC) has asked a U.S. federal court to dismiss a lawsuit brought by CME Group, arguing that the exchange’s claims of competitive harm lack legal standing. The CFTC described the case as “much ado about nothing,” asserting that CME could list the same crypto futures products approved for Kalshi and that its own trading data shows no decline in volume following the decision.
The dispute centres on the CFTC’s May 29 approval of Kalshi’s bitcoin perpetual futures, which CME Group alleges should be classified as swaps under the Commodity Exchange Act and Dodd-Frank rules. CME’s complaint claimed the CFTC’s authorisation allowed competitors to “seek to compete with CME for retail customers,” but the CFTC countered that regulatory distinctions between swaps and futures are not significant enough to justify the lawsuit.
CME’s monthly volume data for bitcoin and ether-related futures rose in June and August compared to May, according to the CFTC’s motion, undermining claims of market harm. The agency also argued that any alleged injuries are “self-inflicted,” citing CME’s refusal to list perpetual futures—a position that remains unproven.
The CFTC has requested an oral hearing, with CME’s opposition to the motion due on October 2. The Block, which first reported the CFTC’s motion, said it had sought comment from CME but received none. The outcome of the case could influence how crypto derivatives are regulated and traded in U.S. markets.
Written by Steven Cook
Regulation Desk
