CME Group plans to sue the U.S. Commodity Futures Trading Commission over the agency’s approval of crypto perpetual futures, according to CEO Terrence Duffy. Speaking on CNBC, Duffy said these products should not be treated as futures contracts and instead fall under the regulatory framework for swaps. The dispute follows CFTC approvals that opened a regulated route for crypto perpetual products tied to platforms including Kalshi and Coinbase.
Perpetual futures, commonly known as perps, let traders speculate on price moves without holding the underlying asset, and they do not expire. That product design sits at the center of the case. Duffy argued that under the Dodd-Frank Act, an arrangement involving the exchange of payments between two parties fits the definition of a swap rather than a futures contract.
An Eight-Month Legal Effort Inside CME
Duffy said CME and its board have been working on the legal challenge for eight months. He pushed back on the idea that the lawsuit was triggered by recent competitive pressure. He also said CME has exclusive licensing agreements with benchmark providers, and that products linked to those benchmarks should go through CME regardless of how they are structured.
That broadens the dispute beyond product labeling alone. The main legal question remains narrow: whether crypto perpetuals belong under futures rules or swap rules in the U.S. regulatory system.
Kalshi and Coinbase Approvals Intensified the Fight
The clash gained momentum after the CFTC approved Kalshi’s BTCPERP contract in late May, allowing the platform to launch a regulated Bitcoin perpetual futures product in the United States. Kalshi later expanded its perpetual offerings to additional cryptocurrencies. Coinbase also secured a regulated path for certain crypto perpetual products available to U.S. traders.
Duffy criticized the agency’s approach, saying the approval relied on legal precedents established before Dodd-Frank. In his view, the current framework calls for a different reading of the law. His challenge is aimed not only at a specific approval, but at the interpretation the regulator used to reach it.
CFTC Defends Its Position Publicly
Earlier this week, CFTC Chair Michael Selig defended the agency’s stance on CNBC, saying regulated perpetual futures should be available in U.S. markets while remaining under domestic oversight. Reuters also reported that a CFTC spokesperson described the planned lawsuit as “frivolous” and said the agency looks forward to addressing the claims.
The case puts CME and the CFTC on opposite sides of a growing debate over a fast-expanding derivatives product. CME has previously said crypto perpetual futures carry risks tied to leverage, funding costs, and automatic liquidations. The lawsuit is set to focus on how U.S. law classifies crypto perpetuals, a question that could influence how regulators oversee the market going forward.