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CME sues to block CFTC approval of perpetual-style Bitcoin and Ether futures

The dispute targets how perpetual contracts can be offered in the US, after the CFTC approved a Kalshi spot-referencing contract and later outlined a path to convert existing perpetual-style futures into no-expiry contracts.

Reported · Written up by our desk · Market Structure

Coinbase started offering nano perpetual-style Bitcoin and Ethereum futures on its CFTC-regulated derivatives exchange, expanding in the US a product style that has dominated offshore crypto trading and leverage.

The story traces the shift to US oversight after the CFTC approved KalshiEX's BTCPERP in late May, followed by a June framework that gave designated contract markets a conditional route to remove expiration dates from existing perpetual-style crypto futures and convert them into genuine no-expiry contracts.

CME then filed suit in federal court in Washington, DC, asking a judge to vacate the Kalshi order and the related CFTC policy statement. In its complaint, CME argues the CFTC chair acted outside the Commodity Exchange Act framework by effectively overriding Congress's definition of a swap, which CME says would otherwise subject perpetuals to stricter dealer registration, capital rules, and reporting.

The outcome of the case is expected to shape how far perpetual futures can spread in the US market, with the CFTC facing a legal test over how it categorized and approved spot-referencing and no-expiry futures structures.

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