CFTC tells court CME has not shown harm from U.S. perpetual futures policy

The U.S. Commodity Futures Trading Commission (CFTC), the federal agency that oversees derivatives markets, has filed a court brief pushing back against CME Group's legal challenge to the government's new policy on perpetual futures. The agency argues that CME has not shown it is being harmed, which means the exchange lacks the legal standing to bring the case.

The filing is the latest step in a dispute that could shape whether perpetual futures trade widely in the United States. The CFTC approved the first bitcoin perpetual futures contract from Kalshi in May and said it would review such products one at a time as futures.

The core arguments on both sides

• The CFTC says allegations of more competition, without a plausible claim of imminent financial injury, do not give CME the right to challenge the agency.
• The agency says crypto futures volume at CME has actually risen since its policy change.
• CME argues perpetual futures are not futures because they have no end date, and should be treated as swaps, which follow a different regulatory path.
• The CFTC contends CME has told investors it has not seen demand for perpetual futures and that they are not substitutes for CME's own products.

What the CFTC's brief argues

In the brief filed on Friday, the CFTC wrote that "allegations of increased competition, without any plausible inference of an imminent financial injury" do not give CME legal standing. The agency also said CME "must plausibly allege an actual or imminent increase in competition" and that "CME has not even done that."

The CFTC also pointed to what CME has said elsewhere, arguing that "CME cannot have it one way with the court and another way with the investing public on earnings calls." CME spokespeople did not immediately respond to a request for comment on the filing, according to CoinDesk.

Where the CME dispute began

The CFTC opened the door to perpetual futures in the U.S. in May, approving the first bitcoin perpetual from Kalshi, and later signaled in a federal register notice that it was open for business on building a domestic market for these contracts. The move came in response to President Donald Trump's crypto agenda, which included bringing perpetual futures into domestic trading.

CME Group, which runs leading global venues for derivatives trading, objected in court. The CFTC first asked a federal judge to dismiss CME's case last month, and this new filing sets out its standing argument in more detail.

Why the classification fight matters

Perpetual futures let traders speculate on the future price of an asset, usually with borrowed money (leverage), and they have no built-in expiration date. Because of that missing end date, CME says they are swaps rather than futures. The label matters: futures and swaps fall under different regulatory approaches, so the outcome could determine how these products are supervised in the U.S.

What is still unclear

The court has not ruled on the standing question, and it remains unknown whether the judge will accept the CFTC's argument and dismiss the case. The supplied material does not indicate a hearing date or a timeline for a decision.

Sources

• CoinDesk

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