CFTC and SEC Seek Comment on Defining 'Swaps' as CME Sues the CFTC Over the Same Question
The exchange says the agency bypassed rulemaking and public comment, while Kalshi has self-certified more than a dozen cryptocurrency perpetuals.
- On Thursday, The Chicago Mercantile Exchange filed a lawsuit in the United States District Court for the District of Columbia, challenging the Commodity Futures Trading Commission's approval allowing Kalshi to list perpetual futures contracts.
- CFTC Chairman Michael Selig approved the contracts May 29, 2026, one day after Kalshi applied, bypassing standard review despite the agency opening public comment on over a dozen policy questions in April 2025.
- CME alleges the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 classified perpetual contracts as swaps requiring regulation, but the chairman overrode Congress's definition and circumvented required regulatory safeguards.
- Kalshi spokesperson Elisabeth Diana said the lawsuit reflects fear of competition, while a CFTC spokesperson called it lawfare against the Trump administration's pro-innovation agenda; Kalshi self-certified over a dozen cryptocurrency perpetuals generating more than $1 billion in trades.
- The Commodity Futures Trading Commission and Securities and Exchange Commission issued a joint public comment request Thursday on updating definitions of swaps and security-based swaps, with a 60-day period addressing the same legal questions now before the courts.
12 Articles
12 Articles
CFTC and SEC Seek Comment on Defining 'Swaps' as CME Sues the CFTC Over the Same Question
The Commodity Futures Trading Commission and Securities and Exchange Commission issued a joint request for public comment on Thursday on updating and clarifying how they define key derivatives products, landing on the same legal question now being litigated in CME‘s lawsuit against the CFTC. The request seeks input on the definitions of “swaps” and “security-based swaps” and the scope of exclusions from them, the treatment of mixed swaps, and ho…
CFTC faces suit over approving Kalshi bid to list ‘perpetual’ futures contracts
WASHINGTON (CN) — The Commodity Futures Trading Commission, the government agency responsible for regulating U.S. derivatives markets, faces a federal lawsuit filed Thursday over its allowing prediction market Kalshi to list perpetual futures contracts. The Chicago Mercantile Exchange, currently the nation’s most valuable derivatives marketplace, filed the suit in the U.S. District Court for the District of Columbia and argues the CFTC wrongful…
(New York = Yonhap News) Correspondent Lee Ji-heon = Chicago Mercantile Exchange (CME) Group, a U.S. derivatives exchange operator, [stated that] virtual currency-related perpetual futures contracts in the U.S....
CME Group to Sue CFTC Over Approval of Perpetual Futures – #CryptoUpdatesGNIT
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…
CME lawsuit challenges whether Kalshi’s Bitcoin leverage push can become an everything-exchange
The CFTC approved KalshiEX's BTCPERP contract on May 29, one day after Kalshi submitted it under Regulation 40.3. The contract references spot Bitcoin, carries no expiry date, and perps generally allow leverage as high as 50-to-1, with automatic liquidation that can wipe out positions during sharp moves. CME CEO Terry Duffy announced the company would sue the CFTC, arguing the regulator misclassified the product. As The Wall Street Journal repor…
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