CFTC Seeks Dismissal of CME Suit Over Crypto Perpetual Futures Policy
Summary
- The U.S. CFTC said it asked a court to dismiss CME’s lawsuit challenging its policy of treating crypto perpetual contracts as futures.
- The CFTC said CME is unlikely to have suffered direct harm from the policy and lacks standing because it, too, can list digital-asset perpetual futures.
- The lawsuit highlights a clash between a traditional derivatives exchange and regulators over the regulatory status of perpetual futures, while the CFTC has advanced a policy that opens a path for such products to be offered within the U.S. regulatory framework.
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The Commodity Futures Trading Commission has asked a court to dismiss a lawsuit by CME Group challenging the agency’s policy of treating cryptocurrency perpetual contracts as futures.
Wu Blockchain reported on September 2 that the CFTC argued in a federal court filing that CME lacks standing because it is hard to show the exchange suffered direct harm from the policy.
The agency said CME itself can list digital-asset perpetual futures under the current policy. While CME claims it was harmed because rival exchanges offer those products, the CFTC said some of that disadvantage stems from CME’s own decision not to launch them.
The regulator also argued that reclassifying perpetual contracts as CME wants would not necessarily eliminate any competitive disadvantage. Even if a court were to rule that perpetual contracts are swaps rather than futures, other exchanges could still offer similar products.
The case is drawing attention because it highlights a clash between a traditional derivatives exchange and regulators over the regulatory status of perpetual futures, which have grown rapidly in the crypto market. The CFTC has been pushing a policy that treats perpetual contracts as futures, opening a path for such products to be offered within the U.S. regulatory framework.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.