CFTC seeks dismissal of CME crypto futures lawsuit

The U.S. Commodity Futures Trading Commission asked a federal court on Sept. 2 to dismiss CME Group’s lawsuit challenging the regulator’s treatment of cryptocurrency perpetual contracts as futures. Summary CFTC asked a federal court to dismiss CME’s lawsuit challenging regulated cryptocurrency perpetual futures classification. Regulator argues CME lacks standing because it can list comparable perpetual contracts on its exchange. CME says Kalshi’s Bitcoin perpetual should be regulated as a swap, rather than traditional futures. CFTC argues reclassification would not prevent rival venues from offering economically similar products to traders. CME must respond by October 2 before the court considers dismissal and the underlying claims. The CFTC argued that CME lacks legal standing because the exchange could list perpetual futures under the same regulatory policy it is challenging. The agency characterized part of CME’s claimed competitive disadvantage as resulting from its own decision not to offer comparable products. CME filed the case in the U.S. District Court for the District of Columbia on June 18. It seeks to overturn the CFTC’s approval of Kalshi’s Bitcoin perpetual contract a...