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BitcoinMarketBlockchainCFTCKalshiUnited StatesLawsuitCMEBTC Perpetual
Sep 3, 2026
2min read
byLakshya Baskar
forTheNewsCrypto
The CFTC on September 2 filed to dismiss CME Group’s lawsuit against Kalshi’s Bitcoin perpetual futures, arguing CME lacks standing and failed to show competitive injury while rejecting claims the contracts are swaps; Judge Colleen Kollar-Kotelly set October 2 for CME’s opposition. KalshiEX’s BTCPERP was approved May 29 and launched June 3 (Ethereum on June 4), with Bitcoin first-day volume above $100 million and one-week notional volume exceeding $1 billion, a development that increases regulatory clarity for crypto perpetual derivatives and could boost adoption and trading volumes across exchanges and CEXs.
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- The CFTC says that CME is unable to prove competitive injury from Kalshi’s Bitcoin perpetual futures.
- The case may impact how regulators in the United States regulate crypto perpetuals.
The Commodity Futures Trading Commission (CFTC)is seeking a dismissal of the lawsuit filed by CME Group against Kalshi’s Bitcoin perpetual futures in a federal court. The Commission asserts that CME does not have standing because the Commission has failed to demonstrate any actual competitive injury caused by its approval of the contract. Furthermore, the document rejects CME’s contention that Kalshi’s perpetual futures are a swap under the Commodity Exchange Act.
CFTC Defies CME Over Competition Concerns
In a 30-page dismissal filing, the CFTC submitted its motion in federal court in Washington, D.C., on September 2. CFTC described CME’s action as “much ado about nothing.” In doing so, the CFTC is defying CME’s core reasons for initiating the lawsuit. CME has not alleged that the CFTC doesn’t have jurisdiction over trading in perpetual futures. Also, it has not claimed that the CFTC did not have the power to give regulatory nod to the contract.
The CFTC believes that CME cannot prove any concrete financial harm from the approval. CME had claimed earlier that Kalshi’s product may become a competitive threat to retail traders. However, the CFTC highlights that CME admitted that there was no demand from its clients for the perpetual futures. CFTC also highlighted that CME’s cryptocurrency futures trading has grown after the approval.
Bitcoin Perpetual Trading Creates a Broader Regulation Controversy
On May 28, 2026, KalshiEX applied for review of its BTCPERP agreement. CFTC approved the agreement the next day according to the regulatory body’s futures regulations. The BTCPERP agreement follows the CF Benchmarks Bitcoin Real Time Index, which measures the spot price of Bitcoin. It is traded in units of 1/10,000 of Bitcoin and runs on a perpetual basis all week long.
The Kalshi exchange began trading Bitcoin perpetuals on June 3 and Ethereum perpetuals on June 4. The first day’s trading volume for Bitcoin went beyond $100 million, based on Kalshi reports and other billion
Possible Impact of Court Decision on Crypto Derivatives
According to the CFTC, CME cannot classify the contracts in an attempt to protect its business from competition under the CEA. The commission further states that the act is meant to ensure development of the futures market, customer protection, innovation, and supervision. Reclassification of the contract does not offer a solution because even though Kalshi would have done so, the contracts can still be classified as swaps. Judge Colleen Kollar-Kotelly has scheduled October 2 for opposition by the CME.
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