CFTC tells court CME has no standing to attack perpetual futures: its own crypto volume rose

The Commodity Futures Trading Commission has filed a brief in CME Group's challenge to its perpetual futures policy, CoinDesk reported on Oct. 19. We have not read the brief itself, only the coverage and quotes below, so treat the details as CoinDesk's account.

What the CFTC argues

The agency says CME lacks legal standing because it has not shown concrete harm. Per CoinDesk, the CFTC wrote that "allegations of increased competition, without any plausible inference of an imminent financial injury" are not enough, and that CME "must plausibly allege an actual or imminent increase in competition" and "has not even done that."

It also points to CME's own numbers: volume in CME's crypto futures has risen since the policy change. And it says CME has told investors it has not seen demand for perpetuals and that they are not substitutes for its futures. In the CFTC's words, "CME cannot have it one way with the court and another way with the investing public on earnings calls."

The background

The CFTC approved Kalshi's first bitcoin perpetual futures contract in May 2026, and a June 3 Federal Register notice said it will regulate perpetuals case by case as futures. CME sued, arguing contracts with no expiration date are swaps, not futures, a different regulatory category. The CFTC moved to dismiss on Sept. 2, as The Block reported. The case is Chicago Mercantile Exchange Inc. v. Selig, No. 1:26-cv-02157, in federal court in Washington, before Judge Colleen Kollar-Kotelly. No ruling has been reported.

Why the futures-versus-swaps label matters

CME's core claim is about classification. Futures trade on regulated exchanges under one rulebook; swaps fall under a different regime with its own reporting and clearing rules. If a contract with no expiration date is a swap, the CFTC's approval path for it would be open to challenge. The agency's answer so far, per The Block's coverage of its Sept. 2 motion, is that CME is not the right party to bring that argument at all.

Supporters of the policy have also filed. The Block reported on Sept. 9 that the Hyperliquid Policy Center filed a brief backing the CFTC and asking the court to drop the case.

What to watch

CoinDesk quotes TD Cowen analyst Jaret Seiberg saying CME may still have an edge on standing and on its swaps argument, and warning that continued growth in perpetuals during the case could complicate unwinding the market if CME wins. CME did not immediately comment on the filing. For traders, the open question is whether US-listed perpetuals, such as the filings we have tracked, keep their footing while the judge decides.

Sources: CoinDesk; The Block. Information, not investment advice.