Terrence Duffy argues Kalshi's perpetual futures product fails to align with the Dodd-Frank Act's definition of a "swap" and should not have been sanctioned.
By Nikhilesh De Jun 18, 2026, 3:44 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on CME CEO Terrence Duffy (Michael Reaves/Getty Images)Terrence Duffy, the CEO of CME, announced that the derivatives exchange intends to initiate a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC) following the agency's recent approval of perpetual futures products.
Duffy criticized the CFTC's endorsement of Kalshi's perpetual futures product, asserting that it does not conform to the Dodd-Frank Act's stipulations governing swaps, as he stated during an interview with CNBC on Wednesday.
According to him, "The Dodd-Frank Act provides a clear definition of what constitutes a swap and what constitutes a future. When two parties exchange payments, it is classified as a swap. Therefore, the products that have been approved as futures are, in fact, swaps, which necessitate compliance with different requirements to engage in the swap market."
Duffy, who will be stepping down from his position next year, indicated that CME would first need to clarify the regulatory framework before contemplating the introduction of its own perpetual futures contracts, noting that the current guidelines are "not very clear."
When probed about whether he believed the CFTC was misrepresenting facts, Duffy acknowledged that he felt the agency was doing so "to an extent." He specifically referenced the CFTC's announcement regarding 24/7 trading, which he claimed was inaccurately portrayed as a rule when it was not.
"There are numerous issues at hand," he remarked.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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