CFTC Seeks Dismissal of CME’s Lawsuit Over Crypto Perpetual Futures

The US Commodity Futures Trading Commission has asked a federal judge to dismiss a lawsuit filed by CME challenging the agency’s approval of cryptocurrency perpetual futures contracts. In a filing this week, the regulator argued that CME lacks legal standing to sue, since it has not demonstrated any actual financial loss from the decision.

The CFTC described the dispute as largely unnecessary, pointing out that the order in question allows any registered exchange, including CME itself, to list similar crypto perpetual products. The agency also noted that CME has publicly stated its own customers have not requested these contracts, suggesting any competitive disadvantage is self-imposed rather than caused by regulatory action.

Background of the Dispute

CME filed its lawsuit earlier this year after the CFTC approved a bitcoin-linked perpetual futures contract that tracks spot prices continuously without an expiration date, using periodic funding payments between traders to stay aligned with market prices. CME argues that such contracts should legally be classified as swaps rather than futures, and claims the CFTC failed to justify its shift from earlier regulatory positions on similar products.

The CFTC countered that even if CME won the case, competing exchanges could continue offering similar products under swap classifications, meaning the ruling would not resolve CME’s underlying competitive concerns.

A federal judge recently denied the CFTC’s request to delay releasing certain administrative records, and both parties have been directed to submit a joint schedule for further proceedings.