Switch to seedless. Get 30% off with SWITCH30 till Oct 26CFTC seeks dismissal of CME lawsuit on crypto perpetual futures
4.2 Regulation The CFTC urged a federal court to dismiss CME’s lawsuit over crypto perpetual futures, arguing CME hasn’t shown harm. The dispute centers on whether perpetuals are futures or swaps.
The U.S. Commodity Futures Trading Commission (CFTC) has strengthened its legal defense against CME Group’s lawsuit, which challenges the approval and regulation of cryptocurrency perpetual futures in the U.S. The CFTC filed briefs in federal court, arguing that CME has not demonstrated any real or imminent financial harm from the new policy and therefore lacks standing to sue. The agency highlighted that CME’s crypto futures trading volume has actually increased since the policy change. It also referenced CME’s own statements about low demand for perpetual contracts. The central issue is whether perpetual contracts—derivatives with no expiration date—should be regulated as futures or swaps, a distinction that affects oversight and margin requirements. The CFTC has asked the court to dismiss CME’s lawsuit before it proceeds, emphasizing that increased competition is not a valid legal basis for the suit. The outcome could have a significant impact on the regulation and development of perpetual futures in the U.S. crypto market.
