‘Much ado about nothing’: CFTC files to dismiss CME’s lawsuit over crypto perpetual futures

The Commodity Futures Trading Commission asked a U.S. federal court on Wednesday to throw out CME Group's lawsuit over the agency's approval of cryptocurrency perpetual futures.In a motion filed in the District Court of Columbia, the CFTC stated that the CME's case is "much ado about nothing," arguing that its claims of competitive injury lack legal standing and substance.On June 18, CME sued the CFTC over the agency's May 29 order approving Kalshi's bitcoin perpetual futures contract and its statement allowing other designated contract markets (DCMs) to list similar contracts as futures. CME argued that such products should be classified as swaps under the Commodity Exchange Act and Dodd-Frank, and that the CFTC circumvented regulations to make the approval."In short, by authorizing Kalshi and others to enter the derivatives marketplace by listing similar cryptocurrency perpetuals as futures, the CFTC ushered new entrants into CME's retail futures market that seek to compete with CME for retail customers," CME said in its complaint.Lacks standingIn its Wednesday motion, the CFTC said CME had not plausibly alleged a competitive injury, as the exchange is free to list the same perpetual futures as Kalshi. The agency also mentioned that CME has publicly said its own customers are not asking for them.Furthermore, CME monthly volume figures cited in the brief show its bitcoin and ether-related futures all higher in June and August than in May, the month the order was issued."Thus, even if CME's vague assertions of competitive injury had any substance, those injuries are entirely self-inflicted and based on CME's refusal to list perpetual futures for trading," the CFTC said.According to the CFTC, CME would not recover from "any purported injury" even if the commission reclassified perpetual futures as swaps, as Kalshi and other DCMs would simply offer the contracts under that new classification. The regulatory and tax differences between swaps and futures are not significant enough to make CME's allegations plausible, the CFTC indicated.The agency also said Congress designed the Commodity Exchange Act around self-regulation, market integrity, and "responsible innovation and fair competition among boards of trade." The CFTC argued CME's lawsuit to stifle innovation and competition "turns that purpose on its head."The CFTC requested an oral hearing. CME's opposition to the motion is due Oct. 2. The Block has reached out to CME for comment.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.