Policy CME Group has initiated legal action against the Commodity Futures Trading Commission (CFTC), claiming that the agency improperly approved Kalshi's inaugural U.S. perpetual futures offering.

CME Group has filed a lawsuit against the CFTC, asserting that the agency incorrectly approved Kalshi's first U.S. perpetual futures product.

By Nikhilesh De Jun 21, 2026, 6:30 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on CME CEO Terry Duffy (Julio Aguilar/Getty Images)

The CME Group's lawsuit contends that the CFTC's approval process for Kalshi's perpetual futures was flawed and seeks to have the court annul the approval and the self-certified products.

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Are they futures or swaps?

The situation unfolds as follows:

CME Group has taken legal action against the CFTC on Thursday, claiming that the agency failed to appropriately evaluate Kalshi's request to list perpetual futures contracts prior to granting it. This lawsuit was filed a day after the outgoing CEO, Terry Duffy, disclosed plans to challenge the approval made in late May.

Importance of the lawsuit:

It is quite uncommon for a well-established entity like CME to pursue legal action against its primary regulator. Perpetual futures, often referred to as perps, are a relatively recent development, with the cryptocurrency sector playing a significant role in this market. CME's lawsuit raises concerns about procedural errors, asserting that the CFTC's approval process for Kalshi's perps contravened Dodd-Frank regulations and could potentially jeopardize the company's interests.

Details of the argument:

CME argues that perps could negatively impact its long-term futures offerings. The lawsuit claims that the CFTC overlooked the consequences of sanctioning perps, asserting that these products should be classified as "swaps" under the Dodd-Frank Act rather than as "futures."a0

Each classification comes with distinct regulatory implications and requirements for the issuing companies. CME CEO Terrence Duffy, who recently announced his intention to step down next year, stated to CNBC last week that this distinction necessitates different regulatory frameworks for market participants.

"The CFTC did not conduct its own assessment of whether its approval of Kalshi’s Bitcoin perpetual as a future aligns with legal standards," the lawsuit asserts. "The CFTC didn't even reference the relevant Dodd-Frank clause defining 'swap.' In fact, 'swap' is not mentioned at all in the Order."

The lawsuit further claims that the CFTC merely "rubberstamped Kalshi's request."

Interestingly, the number of companies obtaining designated contract market (DCM) approvals and venturing into perps is rapidly increasing. On the same day that the CFTC approved Kalshi's application, it also issued a no-action letter to Coinbase, seemingly paving the way for that exchange to offer perps as well, albeit via an offshore intermediary.

Perps are a new type of product that isn't explicitly addressed in the Dodd-Frank Act that CME references in its lawsuit.

In a correspondence, former Starkware General Counsel Katherine Kirkpatrick Bos noted, "Future is undefined anywhere, whereas swap is defined by Dodd-Frank. The CFTC has the authority to classify innovative products that exhibit characteristics of either a future or a swap. CME argues that 'future delivery' indicates that the absence of an expiration date is a key factor."

She mentioned on X (formerly Twitter) that there is "no clear precedent" establishing that "future delivery" is a requirement for a future.

This Week:

Tuesday

  • 14:00 UTC (10:00 a.m. ET) The Senate Banking Committee will conduct a hearing on "The Affordability Agenda," featuring Consumer Bankers Association CEO Lindsey Johnson, National Association of Realtors President Kevin Brown, and Digital Chamber CEO Cody Carbone.

Wednesday

  • 14:00 UTC (10:00 a.m. ET) The House Financial Services Committee will hold a hearing titled "Future of Payments." The speakers have yet to be announced.

Thursday

  • 14:00 UTC (10:00 a.m. ET) A hearing on "The Future of How America Invests" will take place in the House Financial Services Committee. Speaker details are still pending.
  • 18:00 UTC (2:00 p.m. ET) The House Oversight Committee's Subcommittee on Military and Foreign Affairs will conduct a hearing on digital currencies.

If you have any thoughts or inquiries about topics I should cover next week or any other feedback, feel free to reach out via email at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

Join the conversation on Telegram.

See you all next week!

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