CFTC asks court to dismiss CME lawsuit against Kalshi bitcoin perpetual futures
The Commodity Futures Trading Commission (CFTC) has requested a court dismiss a lawsuit filed by CME Group against Kalshi over its cash-settled bitcoin perpetual futures contract. Kalshi's BTCPERP product was approved on May 29 and features no expiration date with a funding rate mechanism that tracks the spot price. CME Group argues against the product, though the article does not detail CME's specific claims.
The CFTC's intervention to defend Kalshi's approval signals the regulator is willing to back event-contract innovation in crypto derivatives against incumbent exchange challenges. A dismissal would validate Kalshi's path to listing novel perpetual products, while a ruling against the CFTC could chill similar contract approvals across the sector.
Third CFTC intervention this week either defending or constraining Kalshi — backing its bitcoin perps in court while stripping its sports injury markets and American-style odds — as the agency simultaneously nurtures and narrows the regulated prediction-market pipeline.