CFTC has filed a motion to dismiss CME’s lawsuit over the approval of perpetual cryptocurrency futures

The agency says CME’s claims of competitive harm are legally unfounded. In May, the CFTC approved a perpetual BTC futures contract on Kalshi. At the same time, the agency allowed other companies operating under a DCM structure to offer similar contracts.

CME argues that such products should be classified as swaps. Accordingly, the CFTC bypassed the rules in order to grant this approval. However, the agency maintains that the differences in regulation and taxation of these products are not significant enough. It also notes that CME is permitted to list the same perpetual futures as Kalshi. The CFTC points out that any potential harm could have been caused solely by CME’s own actions. Moreover, cryptocurrency futures trading volume on CME increased after Kalshi’s application was approved.