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CFTC files to dismiss CME lawsuit over crypto perpetual futures
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- DeepHorus
The U.S. Commodity Futures Trading Commission (CFTC) has filed a motion to dismiss a lawsuit from the Chicago Mercantile Exchange (CME) Group, escalating a legal battle over the classification of cryptocurrency perpetual futures. In a Wednesday filing, CFTC lawyers described the CME lawsuit as "much ado about nothing," arguing the exchange lacks legal standing to sue. The agency is seeking an oral hearing to address the motion, which has not yet been scheduled.
The conflict stems from CME's June lawsuit, which challenged the CFTC's approval of perpetual futures contracts for crypto assets. CME argued that the regulator, under Chair Michael Selig, improperly treated these products as "swaps" rather than "futures," bypassing the full commission and violating the Commodity Exchange Act. The lawsuit was prompted by the CFTC's green light for perpetual futures on prediction market Kalshi and a no-action letter for similar products on Coinbase.
In its dismissal motion, the CFTC directly contests CME's claims of harm. The agency states that CME has failed to demonstrate any concrete or likely financial injury, emphasizing that any CFTC-registered exchange, including CME itself, is free to list perpetual futures on digital assets. The filing underscores that CME is not arguing it is barred from offering such contracts.
A CFTC spokesperson had previously characterized CME's legal action as "lawfare" and labeled the initial complaint as "frivolous." This stance reflects the regulator's position that the lawsuit holds no substantive merit. The motion reinforces this by stating CME cannot plausibly allege financial damage from the CFTC's authorization of perpetual futures.
The outcome of this motion will have significant implications for the regulatory landscape of cryptocurrency derivatives in the United States. A dismissal could affirm the CFTC's authority to categorize certain crypto products and shape how digital asset futures are governed. It would also potentially solidify the regulatory pathway for platforms like Coinbase and Kalshi to offer these products.
For now, the case awaits a hearing on the CFTC's motion to dismiss. The decision will be closely watched by the crypto and financial industries for its impact on innovation, competition, and regulatory precedent. It arrives as the CFTC also seeks public input on other emerging financial products, such as AI compute futures.
