CME Group is preparing a lawsuit against the CFTC over Kalshi's perpetual futures.
The Chicago Mercantile Exchange (CME Group) has announced its intention to file a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC). This statement was made by CME CEO Terrence Duffy, who cited the regulator's recent approval of the launch of perpetual futures by the Kalshi platform as the cause of the conflict.
According to Duffy, perpetual futures are essentially swaps, and therefore fall under the Dodd-Frank Act, which requires a different regulatory regime. The head of the exchange emphasizes that CME holds exclusive licenses for all major benchmarks, and any similar instruments must go through their platform.
Duffy stated that preparations for litigation have been underway for the past eight months. He expressed readiness for a "good fight" and stressed that he does not intend to back down. The main complaint is the CFTC's overly rapid approval of a new product, which, according to Duffy, carries high risks due to significant leverage.
"I am seriously concerned about the structure of these contracts. I don't want people to lose money on products they don't understand," said the CME CEO.
Duffy drew a parallel between the current situation and the housing market before the 2008 crisis, calling excessive speculation an "impending disaster." He confirmed that CME intends to defend its position in court to protect the market from potential systemic risks.
Recall that in May, brokerage firm Interactive Brokers launched a platform combining event outcome contracts from Kalshi, CME Group, and its own ForecastEx service. This has only intensified the tension surrounding the new instruments.
My analysis: The conflict between CME and CFTC is not just a legal dispute, but a signal of an impending regulatory crisis in the derivatives sector. Perpetual futures, especially with high leverage, could indeed become a "Trojan horse" for retail investors if left unchecked. However, CME's position appears to be an attempt to protect its monopoly rather than the market as a whole. The outcome of this case will determine who sets the rules of the game in crypto and event derivatives—traditional exchanges or new fintech platforms.