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CME sues CFTC over approval of crypto perpetual futures

CME argues CFTC misapplies the law because perpetual contracts lack an end date, and it claims the push has not considered impacts to its long-dated futures business.

Reported · Written up by our desk · Regulation

CME Group has sued the U.S. Commodity Futures Trading Commission and its chairman, Mike Selig, challenging the regulator’s decision to allow blockchain-based “perps,” which are decentralized derivative contracts that let traders speculate on asset prices with leverage and no expiration date, according to CoinDesk.

The lawsuit contends the CFTC is mislabeling the products and therefore misapplying the rules. CME says futures products require an end date, while perps are structured for positions without deadlines, and it argues the CFTC’s shift did not weigh potential ramifications for CME’s long-dated futures offerings.

CoinDesk reports the dispute has intensified as non-U.S. perpetual derivatives volume has grown, with perps volume reportedly reaching $60 trillion last year. The tension also flared around the start of the Iran conflict, when interest rose in perpetual oil contracts traded 24/7 on off-shore DeFi exchanges and on blockchain prediction markets with oil-linked trades.

In a related development, CoinDesk says after CME filed suit it attempted to fast-track 24/7 trading for crude oil futures, but the CFTC blocked the request. Jake Chervinsky, CEO of Hyperliquid Policy Center, criticized CME’s posture, saying it is unusual for the largest U.S. exchange to attack its own regulator while the agency says registered firms can offer such products.

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