CME Plans Legal Action Against CFTC Over Perpetual Futures Approval

CME Group chief executive Terrence Duffy said the company plans to sue the US Commodity Futures Trading Commission after the regulator approved Kalshi’s perpetual futures product earlier this month.

Speaking during an interview with CNBC, Duffy argued that the approved product does not meet the legal definition of a futures contract under the Dodd-Frank Act. He claimed the structure instead fits the definition of a swap because it involves two parties exchanging payments over time.

According to Duffy, swaps face different regulatory requirements and are governed under separate rules compared with futures contracts. He said the current approval process has created confusion around how perpetual futures should be classified in US financial markets.

Regulatory Debate Around Perpetual Futures Intensifies

Duffy also criticized the CFTC for what he described as unclear guidance on market rules, including discussions around 24/7 trading. He said CME needs a clearer regulatory framework before deciding whether to launch its own perpetual futures products.

The comments come as regulators and trading platforms continue debating how newer crypto-linked financial products should be supervised. Kalshi’s approval has already drawn attention across the derivatives industry because perpetual futures remain largely associated with offshore cryptocurrency exchanges.

Duffy, who is expected to step down next year, said the legal challenge is aimed at clarifying market rules and protecting the integrity of regulated futures trading in the United States.