- The CFTC argued CME has not shown harm from the new perpetual futures policy.
- The agency approved Kalshi’s first bitcoin perp in May and said it will review such products case by case.
- CME argues perps are swaps rather than futures because they do not expire.
A court fight over perpetual futures in the U.S. is moving forward as the Commodity Futures Trading Commission pushes back against CME Group’s legal challenge. In a brief filed on Friday, the CFTC said CME has not shown that the agency’s new approach is causing actual harm, which the regulator says means the company lacks legal standing. The dispute follows the CFTC’s May approval of Kalshi’s first bitcoin perp and its broader signal that it is open to handling perpetual futures as futures on a case-by-case basis. CME, however, maintains that these contracts should be treated differently under U.S. rules.
CFTC response on perpetual futures
The CFTC used its latest court filing to question whether CME can continue its challenge at all. According to the agency, claims of increased competition are not enough unless CME can plausibly show an actual or imminent financial injury tied to the policy shift.
The regulator also pointed to market data in its argument, saying volume in crypto futures at CME has actually risen since the policy change. On that basis, the CFTC said the derivatives giant has not demonstrated the kind of harm needed to establish legal standing in federal court.
Why CME is challenging perpetual futures
CME operates major global derivatives venues and has argued that contracts without an expiration date should not be classified as futures. Its position is that these products are really swaps, which would place them under a different regulatory approach.
That distinction sits at the center of the case. The CFTC has moved toward allowing perpetual futures under a futures framework, while CME says the lack of an end date makes that treatment inappropriate. Spokespeople for CME did not immediately respond to a request for comment on the latest filing.
The policy shift and market debate
In May, the CFTC approved the first bitcoin perp from Kalshi and signaled it was open to supporting a domestic market for these products. The agency said it would regulate them on a case-by-case basis as futures, a move that opened the door for broader U.S. activity in the sector.
Perps have become a major type of crypto derivatives transaction overseas. These contracts let traders speculate on the future price of an asset, usually with leverage, and they do not have a built-in expiration. The CFTC’s policy was presented as a way to clarify how that market could develop in the U.S.
Investor statements and legal standing
The CFTC also argued that CME’s own public comments weaken its case. In the filing, the agency said CME has told investors it has not heard of demand for perps and that such products are not substitutes for the futures it already offers.
The regulator said those statements clash with CME’s court argument. The brief said CME cannot present one view to the court while offering a different one to the investing public on earnings calls. The agency first asked a federal judge to dismiss the case last month, and the latest filing expands on that standing argument.
Conclusion
The dispute over perpetual futures now turns heavily on whether CME can show that the CFTC’s policy has caused real or imminent harm. The regulator says rising crypto futures volume at CME undercuts that claim, while CME continues to argue that perps should be treated as swaps rather than futures because they have no expiration date. The case follows the CFTC’s May approval of Kalshi’s first bitcoin perp and its decision to review similar products individually. A note from TD Cowen policy analyst Jaret Seiberg said CME may still have arguments on competition and product classification, even as growth in the market continues during the litigation.
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