The U.S. Commodity Futures Trading Commission (CFTC) has moved to dismiss a lawsuit filed by the Chicago Mercantile Exchange (CME) over regulatory approvals for crypto perpetual futures offered by Kalshi and Coinbase. The agency called the lawsuit an overreaction, noting that CME itself is free to list the same products. The CFTC argued that the exchange lacks legal standing and that its claims of competitive injury are self-inflicted. The lawsuit is seen as an attempt to fend off competition from the growing crypto derivatives sector.
The U.S. Commodity Futures Trading Commission (CFTC) has filed to dismiss the Chicago Mercantile Exchange (CME) lawsuit over its crypto perpetual approvals for Kalshi and Coinbase. In the filing, the agency called the CME lawsuit an overreaction, stating, “This lawsuit is much ado about nothing. CME is wrong on the merits–perpetual futures are futures. But there is a more fundamental defect with this lawsuit: CME lacks standing.”
The regulator clarified that the approval allows any player with a Designated Contract Market (DCM) license, including the CME, to offer crypto perps. “So CME is free to list the same type of perpetual futures as Kalshi and other DCMs. Thus, even if CME’s vague assertions of competitive injury had any substance, those injuries are self-inflicted and based on CME’s refusal to list perpetual futures for trading,” the regulator said.
The CFTC disagreed with CME’s claims that it is protected by the Commodity Exchange Act (CEA). The watchdog noted that CME does not fall within the “zone of interests” protected by the CEA, blasting its lawsuit as a way to fend off competition and defend its business. The agency sought for the court to dismiss the exchange’s complaint.
Under the second pro-crypto Trump administration, the sector has grown its stature, securing even stablecoin legislation. Banks are now being forced to embrace stablecoins to stay competitive. Similarly, sports betting firms are frightened about crypto-led prediction markets. If the court grants the CFTC’s motion, crypto perps could threaten another section of traditional finance players.
Plans are at advanced levels to fast-track and onshore Hyperliquid, a popular cross-asset perpetual trading DEX platform. In 2025, perp volume expanded 4x from $300 billion to a record $1.2 trillion at the peak of the bull run last October. During the crypto winter, the volume dropped by half to over $500 billion. The traction could pick up again ahead of the next bull market cycle. Traditional finance is facing a massive disruptive threat from crypto, but the court’s ruling remains pending.
