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

Perpetual futures have no expiration date and use periodic funding rates to track spot prices. Whether they are classified as "futures" or "swaps" determines which trading-venue, registration and regulatory rules apply. CME Group, the world's largest derivatives exchange operator, argues that the CFTC's treatment of these products as futures would ease competitors' entry into the market and weaken market safeguards.

The U.S. Commodity Futures Trading Commission approved Kalshi's BTCPERP on May 29, allowing round-the-clock trading in contracts based on one bitcoin, and issued related no-action relief to Coinbase. CME formally sued the CFTC and its chairman, Michael Selig, in federal court in Washington, D.C., on June 18, seeking to vacate the approval. On the same day, the CFTC and SEC requested public comment on the definition of swaps, with an August 24 deadline.