CFTC tells court CME has no standing to fight US crypto perps
In a new brief the CFTC argues CME has not shown any real harm from its perpetual futures policy, so its lawsuit should fail. CME says perps are swaps.
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The U.S. Commodity Futures Trading Commission has told a federal court that CME Group has no right to challenge its new policy on perpetual futures, because the derivatives giant has not shown the policy is actually hurting it. The brief, filed on Friday, Oct. 16, was reported by CoinDesk on Monday.
What the CFTC argued
The regulator opened the door to perpetual futures ("perps") in the U.S. in May, when it approved the first bitcoin perp from Kalshi and said it would treat such products as futures, case by case. CME went to court to stop that. Last month the CFTC asked the judge to dismiss the case; the new filing spells out why it thinks CME cannot sue at all.
- No injury, no standing: according to the brief, claims of more competition without a plausible, imminent financial injury do not give CME standing. The agency says CME has not even alleged a real increase in competition.
- Volumes are up: the CFTC notes that crypto futures volume at CME has actually grown since the policy changed.
- Mixed messages: the agency says CME has told investors it sees little demand for perps and that they are not substitutes for its futures. "CME cannot have it one way with the court and another way with the investing public on earnings calls," the brief says.
Why CME objects
Perps let traders take leveraged positions on an asset's price without an expiry date. CME's core argument is that a contract with no end date is not a future but a swap — which would put perps under a different, stricter set of rules. CME did not immediately comment on the filing, CoinDesk said.
Perps have become a major form of crypto derivatives trading overseas, and leverage cuts both ways: weekend liquidations such as the $52 million chip-stock perp wipeout show how quickly leveraged positions can unwind. In DeFi, platforms like Pump.fun have added perps via Hyperliquid.
What's next
Jaret Seiberg, a policy analyst at TD Cowen, wrote in a Monday note that CME may still have the edge, both on standing as a competitor and on the argument that perps should be treated as swaps. Meanwhile the new U.S. perps market is waiting for legal clarity. For how regulated and offshore venues differ, see our guide to centralized vs decentralized exchanges.
Frequently asked questions
What is a perpetual future?
A derivative that tracks an asset's price, usually with leverage, but has no expiry date. A periodic funding payment keeps its price close to the spot market.
Why does it matter whether perps are futures or swaps?
Futures and swaps fall under different US rulebooks. Treating perps as swaps would bring a different regulatory approach than the CFTC's case-by-case futures model.
Has the court ruled yet?
No. The CFTC has asked the judge to dismiss CME's case, and the latest brief details its argument that CME lacks standing. No ruling has been reported.
This article is for information only and is not financial advice. Crypto assets are volatile; do your own research. Read our disclaimer
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