🚨 CME sues CFTC over approval of Kalshi’s Bitcoin perpetual contracts 🚨
CME has filed a lawsuit against the CFTC, challenging the agency’s approval of Kalshi’s BTCPERP contract as a futures product. The exchange says perpetual contracts are really swaps under the Commodity Exchange Act, not futures.
🔑 Key highlights:
🔹️ CME filed suit in U.S. District Court for the District of Columbia against CFTC Chairman Michael Selig and the agency itself.
🔹️ The lawsuit targets the CFTC’s May 29 approval of Kalshi’s Bitcoin perpetual contract.
🔹️ CME argues perpetuals belong in the swap category because they have periodic funding payments, no expiration date, no delivery obligation, and transfer price risk without conveying ownership.
🔹️ The complaint also challenges the CFTC’s policy statement that would allow futures exchanges to self-certify similar crypto perpetuals without prior agency approval.
🔹️ CME says the CFTC’s overnight approval violated the Commodity Exchange Act and administrative law principles.
🎯 Bottom Line: CME is trying to stop the CFTC from classifying Bitcoin perpetuals as futures and opening the door to faster self-certification.
https://www.theblock.co/post/405286/cme-sues-cftc-over-approval-of-kalshis-bitcoin-perpetual-contracts