CFTC Asks Court to Dismiss CME Lawsuit Over Kalshi Bitcoin Perpetual Futures

The Commodity Futures Trading Commission filed a motion on September 2 asking a federal judge in the U.S. District Court for the District of Columbia to dismiss the Chicago Mercantile Exchange’s lawsuit challenging Kalshi’s approval to list bitcoin perpetual futures contracts.

The CME had sued the CFTC earlier this year, arguing that perpetual futures are swaps, not futures, and that allowing Kalshi to list them on a designated contract market gave the prediction-market platform an unfair competitive advantage. The CFTC’s filing rejects both claims. It argues that bitcoin perpetual futures are futures under the Commodity Exchange Act and that the CME lacks legal standing because it has not demonstrated concrete financial harm — and could list perpetual futures itself.

Why it matters

This case will set the regulatory classification of perpetual futures contracts in the United States. If the court agrees with the CFTC that perps are futures, any designated contract market — including the CME — can offer them. That would accelerate institutional access to a product category that has dominated offshore crypto trading for years. If the CME’s swap classification prevails, perpetual contracts would face heavier swap-dealer requirements that could restrict who can offer or trade them.

What to watch next

The judge could rule on standing alone, potentially punting the merits question. If the case proceeds, the classification ruling would directly shape how U.S. exchanges compete in crypto derivatives and whether retail traders eventually get regulated access to perpetual futures through traditional brokers.