CME Plans to Sue the CFTC Over Its Perpetual Futures Approval as a Michigan Judge Rebuffs the Agency on Prediction Markets
CME Group says the products are swaps under Dodd-Frank and plans to challenge the approval after Kalshi expanded perps into crypto markets.
- Outgoing CME Group CEO Terrence Duffy announced on Wednesday that CME Group Inc. will sue the Commodity Futures Trading Commission, with litigation filing scheduled for Thursday over the agency's perpetual futures approval.
- Duffy contends the approved products are swaps, not futures, under the Dodd-Frank Act, arguing that when two parties exchange payments, regulatory standards differ from those governing futures contracts.
- During Wednesday's interview, Duffy claimed the CFTC is "misrepresenting certain facts," pointing to a 24/7 trading release the agency described as a rule when it was not, as CME Group challenges the Kalshi perpetual futures approval.
- Separately, a Michigan District Court judge ruled that sports prediction markets fall outside CFTC jurisdiction, with Judge Paul L. Maloney stating the agency's view of derivatives was "so vast" it would encompass unprecedented activity.
- With Sixth Circuit courts split, an appeals court will review the matter next month, with the Supreme Court likely serving as final arbiter; Duffy steps down in March 2027 as these disputes unfold.
24 Articles
24 Articles
CME Plans to Sue the CFTC Over Its Perpetual Futures Approval as a Michigan Judge Rebuffs the Agency on Prediction Markets
CME Group intends to sue the Commodity Futures Trading Commission over its approval of perpetual futures earlier this month, CEO Terrence Duffy told CNBC on Wednesday, putting the largest US derivatives exchange in direct conflict with its own regulator. Duffy argued the CFTC‘s approval of Kalshi‘s perpetual futures did not meet the Dodd-Frank Act’s requirements for swaps. “Under the Dodd-Frank Act, it clearly defines what a swap is and what a f…
CME Group to Sue CFTC Over Approval of Perpetual Futures - Invest In Crypto News
The world’s largest futures exchange operator has escalated its battle against crypto derivatives deregulation, announcing plans to take the U.S. government to court over a product it says never should have been approved. CME Files Lawsuit Against the CFTC CME Group, the world’s largest futures exchange operator, is planning to sue the Commodity Futures Trading Commission over the agency’s decision to approve perpetual futures contracts. CME Chi…
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