CFTC Moves to Dismiss CME’s Challenge Over Bitcoin Perpetual Futures Classification

The U.S. Commodity Futures Trading Commission (CFTC) filed a motion on Sept. 2 asking a federal court in the District of Columbia to dismiss CME Group’s lawsuit that challenges the agency’s classification of Kalshi’s Bitcoin perpetual contract as a futures product.

Background of the dispute

CME sued the CFTC in June, seeking to overturn the regulator’s approval of Kalshi’s Bitcoin perpetual contract (BTCPERP) and a related policy statement that treats such contracts as futures. CME argues that perpetual contracts lack a fixed expiration date and therefore should be regulated as swaps under the Dodd‑Frank Act.

CFTC’s standing arguments

The commission contends that CME lacks legal standing because it can list comparable perpetual contracts on its own exchange under the same regulatory framework. The CFTC says any competitive disadvantage CME claims is “self‑inflicted” since the exchange chose not to list the product.

Additionally, the agency argues that even if a court reclassifies perpetual contracts as swaps, rival venues could still offer economically similar products, so a favorable ruling would not redress CME’s alleged injury.

Key procedural points

• CME must file its response to the dismissal motion by Oct. 2.
• The court has not yet ruled on the motion or on whether perpetual contracts are legally futures or swaps.
• The CFTC has requested an oral hearing, pending the judge’s decision.

Potential implications

If the court dismisses the case on standing grounds, the CFTC’s existing policy and Kalshi’s Bitcoin perpetual contract will remain in place. If the court finds CME has standing, the substantive issues—whether the contract fits the legal definition of a futures contract or a swap—could be examined, potentially affecting future listings of perpetual contracts tied to cryptocurrencies, equities, or commodities.