CME sues CFTC over perpetual futures approvals for Kalshi and Coinbase

CME Group has filed suit against the Commodity Futures Trading Commission, challenging the regulator's decision to allow Kalshi and Coinbase to offer perpetual futures contracts. The Chicago exchange operator argues the CFTC approved these products without following the Administrative Procedure Act's public comment requirements, according to Reuters.

Perpetual futures are derivative contracts with no expiration date, a structure that has become dominant in crypto markets but remained largely outside traditional U.S. exchanges. By letting two non-exchange platforms offer these instruments, the CFTC effectively expanded the competitive landscape without the notice-and-comment process that typically accompanies major rule changes.

CME's legal challenge is not about whether perpetual futures should exist—they already account for the majority of crypto trading volume globally—but about whether the CFTC can unilaterally authorize them for specific firms. The exchange has a commercial interest in the outcome: it operates a regulated futures market and competes directly with both Kalshi, a CFTC-regulated prediction market that has expanded into event contracts, and Coinbase, which has been building out derivatives offerings.

The case turns on administrative procedure, but the stakes are structural. If CME prevails, the CFTC will need to write formal rules for perpetual futures, a process that could take months or years and would apply uniformly across all market participants. If the suit fails, the regulator retains discretion to approve these products on a case-by-case basis, giving it flexibility but also opening the door to claims of unequal treatment.

Watch whether other exchanges join the suit or file amicus briefs. The outcome will determine whether perpetual futures become a regulated product class or remain a discretionary approval granted to select platforms.