US CFTC Urges Court to Dismiss CME Crypto Perpetuals Futures Lawsuit

The U.S. Commodity Futures Trading Commission (CFTC) requested a federal court to dismiss CME Group’s lawsuit over crypto perpetual futures. The Mike Selig-led agency claims the case is “much ado about nothing” and argues the exchange lacks standing on its competitive-injury claims.

US CFTC Files Motion to Dismiss CME Lawsuit

In the latest motion filed in the District Court of Columbia, the CFTC asserted that CME has not shown a plausible competitive injury. The agency noted that CME is also free to list similar crypto perpetual futures products.

However, it has publicly indicated its customers are not requesting them. It means part of its alleged competitive harm stems from its own decision not to offer them.

The CFTC also defended its classification of the contracts as futures rather than swaps, stating that “perpetual futures are futures.”

In addition, CFTC claims CME would not recover from “any purported injury” even if the agency reclassified perpetual futures as swaps, as Kalshi and other designated contract markets (DCMs) would simply offer perpetual futures under that new classification.

Mike Selig Plans Approving More Crypto Perpetual Futures

CME sued the CFTC and Mike Selig in June over the agency’s approval of products like Kalshi’s Bitcoin perpetual futures and other crypto products. This opened the door for other exchanges to list similar products as futures.

The complaint also mentioned steps that allowed Coinbase to facilitate U.S. access to certain offshore perps. CME claimed perpetual futures meet the Commodity Exchange Act definition of swaps under the Dodd-Frank Act.

The CFTC earlier described the lawsuit as frivolous and an attempt at “lawfare” against a pro-innovation agenda. Chairman Mike Selig continued his plans to bring security futures, security perpetuals, and other asset types to market. He added that the move aims to keep the US as the crypto capital of the world.

The CFTC and SEC are seeking comments on topics including definitions of swaps and security-based swaps, and how mixed swaps and emerging products should be treated.

This legal challenge comes as the CFTC under Selig expands access to crypto perpetual derivatives platforms and eases regulatory burdens.