CME sues CFTC over crypto perpetual futures approvals
In brief
- CME filed suit in US District Court challenging CFTC's May 29 approval of crypto perpetual futures.
- CME alleges CFTC violated Commodity Exchange Act by treating futures as swaps with expiration dates.
- CFTC Chair Selig approved futures unilaterally without full five-member panel vote, CME claims.
- CFTC Chair Selig and spokesperson defended approvals as market-friendly, dismissed lawsuit as frivolous.
The CFTC's May 29 Approvals
The lawsuit stems from the CFTC's May 29 decision to approve perpetual futures contracts tied to Bitcoin for prediction markets platform Kalshi and to issue a no-action position for similar products on Coinbase. CME CEO Terrence Duffy signaled the company's intent to challenge the move during a CNBC interview on Monday, one day before filing.
CME's core grievance centers on regulatory classification. The exchange argues that the CFTC treated futures as swaps, a designation that triggers different compliance requirements under the Commodity Exchange Act. CME contends this classification contradicts Congressional directives on derivative regulation.
Selig's Unilateral Authority
A second line of attack targets the decision-making process itself. CME alleged that Chair Selig acted unilaterally without convening a full five-member CFTC panel. Selig was confirmed by the US Senate in December 2025 as chair and sole commissioner. As of Thursday, President Donald Trump had not announced nominations to fill the vacant seats despite Congressional urging.
The structural imbalance creates a governance question: whether a sole commissioner can legitimately approve market-moving policy without bipartisan commission deliberation.
Defense and Counterattack
Chair Selig defended the approvals in public remarks, stating that perpetual futures contracts trade similarly to other derivatives and that the CFTC's position benefits investors. A CFTC spokesperson went further, characterizing CME's lawsuit as "lawfare" against the agency and the administration's crypto policies, dismissing the complaint as frivolous.
Kraken also announced the launch of perpetual futures trading for US users through CFTC-regulated platform Bitnomial, signaling that other market participants are moving forward with the regulatory green light.
