CFTC Seeks Dismissal of CME's Crypto Futures Lawsuit, Citing Lack of Standing

U.S. Commodity Futures Trading Commission (CFTC) has moved to dismiss CME Group’s lawsuit over the regulator’s approval of crypto perpetual futures. The regulator argued that the exchange giant does not have standing and that the CME had not suffered significant damages from Kalshi’s product launch. In its motion to dismiss, the CFTC asked the U.S. District Court for the District of Columbia to rule that the CME’s claims were “procedural” and that the plaintiffs had not proven injury with a “plausible showing.” The regulator added that the harm that the CME alleged was “self-inflicted” because the exchange could list similar products under the very policy it challenged.

The CFTC noted that its own data showed that CME’s bitcoin and ether futures grew by volume in two consecutive months of June and August compared to May, when the lawsuit was filed. It added that if the perpetuals were classified as swaps, then other Designated Contract Markets (DCMs) would be able to provide similar products for the same customers. The CFTC’s argument insinuated that CME would not recoup losses due to Kalshi’s listing on any one venue.

CME Group sued the CFTC on June 18, 2026, arguing that perpetuals should be regulated as swaps and that the regulator violated the Commodity Exchange Act and the Commodity Futures Trading Commission Improvement Act of 2000 (Dodd-Frank). By filing the suit, CME Group asked the court to order the CFTC to reverse the swap determination and bar any future trading of perpetual contracts or any other products on U.S. DCMs.

The lawsuit between CME and CFTC over crypto perpetuals is a huge battle for the future of derivatives. The main issue in the case is whether these instruments that do not have expiry dates and use funding-rate mechanisms should be considered futures products or need to be regulated as swaps. The case will decide which entities can provide the instruments and what the required margins and capital for such exchanges will be. The CME’s motion to dismiss was due on October 2, 2026, and the CFTC requested an oral hearing.

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