Overview
- CME Group filed a federal lawsuit asking a court to vacate the CFTC’s approval of competitor perpetual futures and to reclassify those contracts as swaps under Dodd‑Frank.
- The suit argues perpetual futures, or perps, lack a fixed expiration date and therefore meet the statutory definition of a swap rather than a futures contract.
- CME alleges the CFTC approved Kalshi’s U.S. perpetual product without performing its own legal analysis and effectively rubberstamped Kalshi’s self‑certification.
- The CFTC issued a no‑action letter that same approval period which appears to clear a path for Coinbase to list perps through an offshore intermediary.
- If a court reclassifies perps as swaps, platforms and traders would face mandatory clearing, dealer registration, expanded reporting, and higher margin or capital costs that could raise trading costs and push much perp activity offshore.