CME Group Challenges CFTC Approval of Perpetual Futures in US Court

CME Group has filed a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC), challenging the regulator’s decision to allow perpetual futures contracts to trade in the United States. The case was submitted to the U.S. District Court for the District of Columbia and targets both the agency and its chairman, Michael Selig.

CME argues that the CFTC abruptly changed its interpretation of financial regulations by approving perpetual futures products for Kalshi and Coinbase last month. According to the complaint, the regulator bypassed rules established under the Commodity Exchange Act and ignored legal definitions that should classify perpetual contracts differently.

CME Warns of Market and Regulatory Risks

Perpetual futures are contracts that track asset prices without an expiration date, making them popular in cryptocurrency derivatives markets. CME Chief Executive Terrence Duffy has repeatedly argued that such products should be regulated as swaps under the Dodd-Frank Act rather than futures.

CME claims the approvals create direct competition for its retail futures business and criticized the lack of a public comment process before the products were authorized. The CFTC rejected the allegations, calling the lawsuit an attempt to block competition and defending its support for financial innovation. Industry participants remain divided as the legal battle could shape the future of perpetual futures trading in the United States.