ImportantU.S. CFTC Rejects CME's Standing to Sue, Says Exchange Failed to Prove Harm From New Perpetual Contract Policy
The U.S. Commodity Futures Trading Commission (CFTC) filed a court submission last Friday, arguing that the Chicago Mercantile Exchange (CME) lacks standing to sue as it has failed to demonstrate it suffered harm from the CFTC's new perpetual contract regulatory policy. The CFTC noted that CME's crypto futures trading volume has risen rather than fallen following the policy adjustment, and that CME previously stated to investors during earnings calls that it had observed no demand for perpetual contracts and that the two product categories are not substitutes. The CFTC approved Kalshi's launch of the first U.S. Bitcoin perpetual contract in May this year, and stated it will regulate such products on a case-by-case basis under futures rules. CME maintains that perpetual contracts, which have no expiration date, should be classified as swaps for regulatory purposes. The CFTC already filed a motion last month requesting the judge to dismiss the case.
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