CFTC Says CME Lacks Standing in Suit Over Kalshi Perpetual Futures Approval
Summary
- The US CFTC said CME lacks standing to sue over the approval of a crypto perpetual futures product.
- The CFTC said CME suffered no concrete harm from the approval of Kalshi Bitcoin (BTC) perpetual futures and that crypto futures trading volume has increased instead.
- Jaret Seiberg, a TD Cowen analyst, said the situation could become more complicated if the perpetual futures market expands while the lawsuit is underway.
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The Commodity Futures Trading Commission said CME lacks standing to sue over the approval of a cryptocurrency perpetual futures product.
CoinDesk reported on Oct. 19 that the CFTC filed a brief arguing CME had not suffered any concrete harm from the approval.
The CFTC approved prediction-market platform Kalshi's Bitcoin perpetual futures product in May. CME then sued, arguing the product is a swap rather than a futures contract.
The CFTC disputed that claim, saying CME suffered no harm from the approval and that trading volume in its crypto futures products has risen instead.
Jaret Seiberg, an analyst at TD Cowen, said the situation could become more complicated if the perpetual futures market expands while the lawsuit is pending.
JH Kim
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