CME Group Plans to Sue U.S. Commodity Futures Trading Commission

Crypto perpetual contracts have no expiry date and use periodic funding payments between long and short positions to keep prices aligned with spot markets. The dispute centers on whether such products should be regulated as futures or swaps in the United States, a distinction with implications for oversight, taxation and competition. Chicago Mercantile Exchange Inc. argues the Commodity Futures Trading Commission reversed its earlier treatment of perpetuals without adequately explaining the legal basis.

The CFTC approved KalshiEX LLC’s Bitcoin perpetual futures contract, BTCPERP, on May 29, 2026, and CME sued on June 18. In a Sept. 2 filing in federal court in Washington, the regulator sought dismissal, saying CME lacks standing because it has not shown a concrete competitive injury and may list comparable products as a designated contract market. The agency also argued that reclassifying the contracts as swaps would not eliminate the alleged competition. CME’s response is due Oct. 2.

Perpetual contracts use recurring funding payments to track spot prices without an expiry, making them the dominant crypto derivative offshore. Non-U.S. volume reached roughly $60 trillion in 2025, underscoring the stakes as Washington brings the product onshore. The dispute turns on whether perps are futures or swaps under the Dodd-Frank Act, a distinction that changes margin, registration and tax rules and could reshape competition in U.S. onchain markets.

CFTC Chairman Mike Selig on May 29, 2026 approved KalshiEX’s BTCPERP and cleared Coinbase Financial Markets to provide access to perpetuals on affiliate Deribit FZE. CME sued the agency and Selig in federal court in Washington on June 18, seeking to vacate the decision; Kalshi said launch volume topped $1 billion in under a week. CEO Terry Duffy also warned customers could face an IRS challenge to Section 1256’s 60%-long-term, 40%-short-term tax treatment if the contracts are ultimately deemed swaps.