CME plans to sue the CFTC over its approval of perpetual futures, with CEO Terrence Duffy arguing the products should be treated as swaps.
CME Group, the world’s largest futures exchange operator, plans to sue the Commodity Futures Trading Commission (CFTC) over its approval of perpetual futures, with Terrence Duffy, its chief executive officer, arguing the products should be treated as swaps.
Duffy said Wednesday on CNBC’s Fast Money that the exchange operator will file litigation against the Commodity Futures Trading Commission on Thursday.
In late May, the CFTC cleared a Bitcoin perpetual futures contract for listing on Kalshi. Subsequently, the platform introduced perpetual futures for other altcoins besides BTC▼$62,914.00.
Read also: CME Bitcoin Volatility Futures Open New Trade Beyond BTC Price
For CME, the issue is partly legal and partly competitive as the exchange is a central venue for regulated futures tied to commodities, rates, equities and crypto benchmarks.
According to Duffy, perpetual futures are supposed to be classified as swaps under the provisions of the Dodd-Frank Act, rather than as regular futures products.
He also pointed to CME’s benchmark relationships, saying the exchange has “an exclusive license” with benchmark providers and that those products would have to go through CME.
But the CFTC has defended the move as a way to bring products that already exist offshore into regulated U.S. markets.
Duffy Says CME Is Ready to Fight
Duffy, who is set to step aside as CME CEO in March 2027, said he has been working with CME’s board on the plan for months.
“I’ve never shied away from one, and I won’t shy away from this,” Duffy said, adding that CME is “not taking this lightly.”
The legal question is whether Kalshi’s product is properly treated as a futures contract under the CFTC’s approval process or should instead be regulated as a swap.
The issue is that that distinction affects who can list the products, how they are margined, what rules apply and how quickly crypto perpetuals can move into regulated U.S. markets.
Read more: CME Launches Avalanche and Sui Futures Ahead of 24/7 Crypto Trading Expansion
