CFTC asks judge to dismiss CME lawsuit over Kalshi bitcoin perps
The Commodity Futures Trading Commission asked a federal judge to dismiss a lawsuit from CME Group challenging the agency's approval of Kalshi's bitcoin perpetual futures. The CFTC argues CME cannot challenge the approval without showing concrete financial harm. CME is contesting Kalshi's crypto derivatives product. The dispute began after the CFTC approved prediction-market designated contract markets to offer perpetual futures on digital assets.
Kalshi's crude oil filing and now the CFTC's defense of its bitcoin perps put CME in a two-front fight against a prediction-market platform eating its core derivatives business. CME relies on self-certification rules that favor incumbents with massive compliance teams, but the CFTC's dismissal motion signals the agency is not shelving Kalshi's pathway.
Duffy's roundtable push for stricter surveillance standards now looks like an attempt to raise Kalshi's costs before more products clear. If the court dismisses, Kalshi gains cover to file perpetuals on every major commodity and index CME lists, forcing margin and fee competition that CME has never faced from a CFTC-registered prediction market. The first mover sets templates rivals match, and Kalshi is racing to file before any rule change lands.