CME-CFTC Clash Deepens Over 24-Hour Oil Futures, Crypto Perpetuals

A dispute over regulatory consistency is intensifying at the US Commodity Futures Trading Commission after the agency blocked CME Group's bid to offer 24-hour crude futures trading while allowing cryptocurrency perpetual futures without a separate rulemaking process.

CoinDesk reported on July 28 that CME recently sought approval for seven-day-a-week, 24-hour trading in West Texas Intermediate crude futures but did not get the CFTC's signoff. The regulator, by contrast, allowed perpetual futures trading by Kalshi and Coinbase through policy statements and case-by-case reviews.

CME Chairman Terry Duffy criticized the agency for blocking the exchange's 24-hour commodity product while failing to explain how it would oversee perpetual futures policy.

The CFTC is structured as a five-member commission, but only Chairman Mike Selig is currently serving. Liz Davis, a partner at Davis Wright Tremaine, said a full five-member panel would have produced dissenting views and additional review.

Jaret Seiberg, an analyst at TD Cowen, said the CFTC had previously viewed perpetual futures as swaps but approved them without formal rulemaking. Because swaps and futures operate under different regulatory and tax regimes, he said CME may hold a legal advantage.

The crypto industry, meanwhile, argues that CME is using regulation to keep new competitors out of the market. A court ruling could shape the US on-chain derivatives market and how the CFTC handles future approvals.