Are perps swaps? A quick look at that CME suit: State of Crypto

CME Group sued the CFTC on Thursday, alleging that the agency was wrong in how it approved Kalshi's first U.S. perpetual futures product.

Are perps swaps? A quick look at that CME suit: State of Crypto

Policy

Are perps swaps? A quick look at that CME suit: State of Crypto

CME Group sued the CFTC on Thursday, alleging that the agency was wrong in how it approved Kalshi's first U.S. perpetual futures product.

By

Nikhilesh De

Jun 21, 2026, 6:30 p.m.

3

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CME CEO Terry Duffy (Julio Aguilar/Getty Images)

CME Group filed a lawsuit against the Commodity Futures Trading Commission alleging it should not have approved Kalshi's perpetual futures contracts the way it did and asking a court to vacate the approval and self-certified products.

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Futures or swaps?

The narrative

CME Group

sued the CFTC on Thursday

, alleging the agency did not properly consider prediction market provider Kalshi's application to list perpetual futures contracts before granting the application. The suit came a day after outgoing CEO Terry Duffy announced it would file over the approval granted at the end of May.

Why it matters

It is — not to put too fine a point on it — somewhat unusual for a company as established as CME to sue its primary regulator. Perpetual futures, otherwise known as perps, are relatively new and the crypto industry is a major part of these contracts. CME's lawsuit is alleging procedural issues, saying how the CFTC went about its approval of Kalshi's perps violated Dodd-Frank and risk harming the company.

Breaking it down

CME is arguing that perps are harmful to its long-dated futures products. The lawsuit alleges that the CFTC did not consider the ramifications of approving perps, and that these products are actually "swaps" as defined by the Dodd-Frank Act, and not "futures."

Each term carries implications for how the products themselves are to be regulated and what the requirements are for the companies issuing them are. CME CEO Terrence Duffy, who recently announced he's stepping down next year,

told CNBC last week

that the distinction mandates different rules for participants.

"The CFTC did not engage in its own analysis of whether its approval of Kalshi’s Bitcoin perpetual as a future is consistent with law," CME's lawsuit said. "The CFTC did not even mention the relevant Dodd-Frank provision defining 'swap.' Indeed, the word 'swap' appears nowhere in the Order."

The CFTC instead just "rubberstamped Kalshi's application," the lawsuit claimed.

What's interesting is that the actual landscape of companies securing designated contract market (DCM) approvals and moving into perps is growing quite rapidly. On the same day

the CFTC granted Kalshi's application

, it sent a no-action letter to Coinbase, seemingly opening the door for that exchange to list perps as well — albeit through an offshore intermediary.

Perps are a novel product though, one that is not necessarily considered in the actual Dodd-Frank Act that CME points to through its lawsuit.

In an email, former Starkware General Counsel Katherine Kirkpatrick Bos said, "Future is not defined anywhere, whereas swap was defined by Dodd-Frank. The CFTC has the discretion to categorize novel products that have the characteristics of a future as opposed to swap. CME is making the argument that 'future delivery' means that the lack of expiry is determinative."

She

said on X

(formerly Twitter) that there is "no clear precedent" on a "future delivery" being a requirement for a future.

This week

Tuesday

14:00 UTC (10:00 a.m. ET) The Senate Banking Committee will hold a hearing on "

The Affordability Agenda

," featuring Consumer Bankers Association CEO Lindsey Johnson, National Association of Realtors President Kevin Brown and Digital Chamber CEO Cody Carbone.

Wednesday

14:00 UTC (10:00 a.m. ET) The House Financial Services Committee will hold a hearing titled "

Future of Payments

." The speakers have not yet been disclosed.

Thursday

14:00 UTC (10:00 a.m. ET) The House Financial Services Committee will hold a hearing on "

The Future of How America Invests

." The speakers have not yet been disclosed.

18:00 UTC (2:00 p.m. ET) The House Oversight Committee's Subcommittee on Military and Foreign Affairs

will hold a hearing

on digital currencies.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at

[email protected]

or find me on Bluesky

@nikhileshde.bsky.social

.

You can also join the group conversation on

Telegram

.

See ya’ll next week!

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Latest Research

CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High

CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High

In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

By

CoinDesk Research

Jun 15, 2026

In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

Why it matters

:

In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

View Full Report

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