The Commodity Futures Trading Commission (CFTC) of the United States has requested a federal judge to dismiss the lawsuit filed by the Chicago Mercantile Exchange (CME). This case revolves around the regulatory classification of crypto perpetual futures, with the focus on whether such contracts, which have no expiration date, should be considered futures or swaps.

The dispute originated from the approval of Kalshi.

This lawsuit stems from CFTC's previous approval of the Bitcoin perpetual contract Kalshi. CME subsequently filed a lawsuit, claiming that since the product has no expiration or delivery date, it should be classified as a swap according to the definition of the Commodity Exchange Act, and therefore there are issues with the relevant approval process.

CFTC responded in the latest document that CME did not question whether regulatory authorities had the authority to approve such products, but opposed the committee's classification of them as futures. Regulators believe that this is more of a disagreement over classification than actual damage sufficient to support a lawsuit.

CFTC claims no financial damage was incurred

Regulators stated that CME has not demonstrated any financial losses as a result of this decision, nor has there been any evidence to suggest that market competition has significantly intensified as a consequence. CFTC also pointed out that similar digital asset perpetual futures can be listed on any designated contract market where they are registered, and CME is not excluded from this.

CFTC also cited a previous public statement by an executive from CME, who stated that customers have not actively requested sustainable futures products, and that such contracts cannot replace the hedging tools provided by CME for institutional clients. Based on this, regulators refuted the claim by CME that competition has been harmed.

Disputes may extend to more assets.

Sustainable futures have long been primarily active on offshore crypto platforms. After Kalshi was approved, such products began to enter the regulated markets in the United States. Subsequently, Kalshi filed for contracts related to tokens such as Ethereum, XRP, Solana, and Dogecoin.

This dispute may also extend beyond digital assets. Kalshi applied in August to launch perpetual futures for tracking copper prices, but CFTC stated that asset categories other than digital commodities still need to be reviewed on an individual basis. The judge has not yet made a ruling regarding the rejection of the application.