CFTC files to dismiss CME crypto perpetual futures suit
The CFTC files dismiss CME claims in a District of Columbia court motion, calling the exchange's crypto perpetual futures lawsuit "much ado about nothing." Agency lawyers say CME Group lacks standing and has not shown likely financial injury after its June challenge to Bitcoin perpetual products tied to Kalshi and Coinbase.
Key Takeaways
- The U.S. Commodity Futures Trading Commission asked a federal court to dismiss CME Group's civil suit over crypto perpetual futures.
- CFTC lawyers labeled the case "much ado about nothing" and argued CME lacks standing because it has not shown likely financial injury.
- CME sued in June after the CFTC approved Bitcoin spot-tied perpetual futures for Kalshi and issued a no-action position for similar Coinbase products.
- The agency says any CFTC-registered exchange can list digital-asset perpetual futures, and CME does not claim it cannot list the same type of contract.
- CFTC Chair Michael Selig and the commission requested an oral hearing; none was scheduled on the public docket as of Thursday.
Why did the CFTC move to dismiss CME's lawsuit?
In a Wednesday filing in the U.S. District Court for the District of Columbia, lawyers for Chair Michael Selig and the commission sought dismissal and a hearing. They argued CME failed to make a "concrete showing that it is in fact likely to suffer financial injury."
The filing stressed that "any CFTC-registered exchange can list perpetual futures on digital assets." Because CME does not argue it could not list the same type of futures contract, the agency says the exchange lacks standing. Coverage of the motion is available via Cointelegraph's report.
A CFTC spokesperson previously told Cointelegraph that CME had engaged in "lawfare" and called the June complaint "frivolous." More regulatory and market updates sit in our Fintech & Crypto Alerts hub.
What did CME argue about crypto perpetual futures?
CME Group filed suit in June after the commission approved perpetual futures contracts tied to the spot price of Bitcoin for prediction markets platform Kalshi. The CFTC also issued a no-action position for similar products on cryptocurrency exchange Coinbase.
The June complaint claimed the regulator's treatment of cryptocurrency "futures" as "swaps" went against Congress. It argued Selig had unilaterally acted without a full panel of five commissioners and went against the Commodity Exchange Act by treating "futures" as "swaps" with expiration dates.
The CFTC filing replied that CME claims injury from an order authorizing "perpetual futures contracts" on digital assets like bitcoin, plus a broader policy statement, yet does not argue it is barred from listing the same contracts. The motion said CME "has not alleged, and cannot plausibly allege, that it suffered a financial injury" and therefore lacks standing.
What happens next in the CFTC-CME case?
Selig and the CFTC requested an oral hearing on the motion to dismiss. As of Thursday, that hearing had not been scheduled on the public docket.
Until a judge rules, the dispute remains unresolved. CME challenges how crypto perpetual futures were authorized and classified, while the CFTC maintains registered exchanges can list comparable products and that CME has not shown financial injury. Traders and venues watching U.S. crypto derivatives rules should track the District of Columbia docket for the next procedural step.