The CFTC has asked a Washington D.C. court to dismiss CME's lawsuit challenging Kalshi's bitcoin perpetual futures. Kalshi's cash-settled BTCPERP was approved in May, with no expiry date and a funding rate mechanism. CME argued the product is a swap rather than a futures contract, but the CFTC called the lawsuit an "overreaction" and noted CME could list similar products itself. CME must file a response by October 2.
The U.S. Commodity Futures Trading Commission (CFTC) has asked a federal court in Washington D.C. to dismiss a lawsuit filed by CME against Kalshi over the latter's bitcoin perpetual futures product, according to a post by Bitcoin News on X.
Kalshi's cash-settled bitcoin perpetual futures contract, ticker BTCPERP, received regulatory approval on May 29. The product has no expiration date, uses a funding rate mechanism, and tracks the spot price of bitcoin.
In its lawsuit, CME argued that a contract without a delivery date and with ongoing payments should be classified as a swap, not a futures contract. The CFTC countered that the lawsuit is an "overreaction" and pointed out that CME is free to list a similar product itself. The commission also noted that CME's own bitcoin futures trading volumes were higher in both June and August than in May.
CME has until October 2 to file its formal response to the motion.
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