Inside the CME and CFTC’s battle over onchain perpetual futures
CME Group is suing the CFTC and Chair Mike Selig over the agency’s move to allow crypto-style perpetual futures (“perps”) on platforms like Kalshi and Coinbase. CME argues perps are being mislabeled, since futures normally have expiration dates, and that the CFTC is effectively approving swaps without following the usual rulemaking process. CME also says the policy could hurt its own futures business and raises enforcement problems, including restricting U.S. traders from offshore perp markets. The dispute has widened as CME simultaneously sought approval for a 24/7 crude oil futures contract, which the CFTC blocked. Supporters of the CFTC see CME’s lawsuit as an incumbent trying to suppress competition from DeFi and crypto markets. Legal analysts say the key issue is whether perps are treated as swaps or futures, since the regulatory and tax consequences differ. The CFTC is currently operating with Selig as its only member, and has been using case-by-case guidance rather than formal rulemaking.
