CFTC Files Motion to Dismiss CME Lawsuit Over Crypto Perpetual Futures
The US Commodity Futures Trading Commission (CFTC) has filed a motion to dismiss a civil lawsuit brought by the Chicago Mercantile Exchange (CME) challenging the regulator’s classification of cryptocurrency futures as swaps. CME alleged that the CFTC’s treatment violated federal law. In its filing, the CFTC contests CME’s legal standing, arguing that the exchange has not demonstrated concrete financial harm from the agency’s actions.
Background of CME Lawsuit
In June 2023, the Chicago Mercantile Exchange (CME) filed a lawsuit against the CFTC following the commission's approval of perpetual futures contracts tied to Bitcoin’s spot price on the prediction market platform Kalshi, along with a no-action relief for similar products on crypto exchange Coinbase.
CME’s complaint asserted that CFTC Chair Michael Selig acted unilaterally without the full panel of five commissioners, violating the Commodity Exchange Act. CME contended that the regulator improperly treated 'futures' as 'swaps' with expiration dates.
CFTC’s Arguments in Response
On Wednesday, the CFTC filed a motion to dismiss the lawsuit in the US District Court for the District of Columbia, claiming CME lacks legal standing.
The filing argues CME failed to show concrete financial injury and emphasizes that any CFTC-registered exchange can list perpetual futures on digital assets.
The CFTC dismissed CME’s claims as "much ado about nothing," noting CME does not allege it is barred from offering similar contracts independently.
Reactions and Next Steps
A CFTC spokesperson had previously described CME’s lawsuit as “lawfare” and called the June complaint “frivolous.”
The CFTC and Chair Selig have requested an oral hearing to address the dismissal motion, but no date has been scheduled publicly yet.
Why it matters
This legal dispute between one of the largest derivatives exchanges and the US regulatory agency highlights evolving tensions around the regulation of cryptocurrency derivatives. A ruling on the CFTC’s motion could affirm the agency’s authority and clarify the legal status of crypto perpetual futures in the US, which is vital for market development and innovation within the crypto space.
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