The U.S. Commodity Futures Trading Commission (CFTC) has requested a federal judge to dismiss a lawsuit filed by the Chicago Mercantile Exchange (CME). The exchange initiated legal action following the regulator's decision to classify Kalshi’s Bitcoin perpetual contracts as futures rather than swaps.
In its motion, the CFTC argued that the CME failed to demonstrate any financial harm or increased competitive pressure resulting from the approval. The agency noted that the CME is permitted to list similar perpetual futures products on digital assets, as the current policy allows any registered exchange to offer such contracts.
The regulator further cited internal CME data showing that trading volumes for its existing Bitcoin and Ethereum futures products in August surpassed those recorded in May. The CFTC also referenced public comments from CME executives stating that their clients had not requested perpetual futures and did not view them as substitutes for institutional hedging tools.
The dispute originated after the CFTC approved Kalshi’s Bitcoin perpetual contract on May 29, marking the entry of these products into the regulated U.S. market. Following this, Kalshi sought certification for contracts tied to 12 altcoins, including Ethereum, XRP, Solana, and Dogecoin. The CME announced its legal challenge on June 18.
The scope of the regulatory framework may expand beyond digital assets, as Kalshi filed to list a perpetual future tracking copper prices in August. The CFTC clarified that contracts based on non-digital commodities will require individual review. As of now, the judge has not issued a ruling on the motion to dismiss.