CME Group to Sue CFTC Over Perpetual Futures Approval

Highlights:

• CME Group CEO has revealed that the company plans to take legal action against the CFTC over its decision to approve perpetual futures.
• The CEO stated that the CME board supports the move and is ready to take the legal battle to any extent. 
• The CFTC chairman argued that the agency’s decision aims to make perpetual futures available in the United States.

Derivatives marketplace Chicago Mercantile Exchange (CME Group) is preparing to take legal action against the United States Commodity Futures Trading Commission (CFTC). Terrence Duffy, the company’s outgoing Chief Executive Officer, disclosed on CNBC’s Fast Money on Wednesday, noting that the legal action centers around the agency’s decision to approve cryptocurrency perpetual futures in the US. 

Advertisement

The CEO stated that CME Group will file the lawsuit today. He argued that the products recently approved by the CFTC should be treated as swaps under the Dodd-Frank Act rather than futures contracts. The major dispute centers around Bitcoin (BTC) perpetual futures, often called “perps.” Unlike traditional futures contracts, Bitcoin perpetual futures do not have an expiration date. Instead, they allow traders to bet on price movements without directly owning the asset. 

Just In: CME to Sue CFTC Over U.S. Approval of Perpetual Futures

CME Group, the world’s leading derivatives marketplace, will sue the CFTC over its approval of perpetual futures in the U.S., outgoing CEO Terrence Duffy said. The dispute follows the CFTC’s late-May approval… pic.twitter.com/7S4KfzLnsY

— Wu Blockchain (@WuBlockchain) June 18, 2026

While perpetual futures have been widely used on overseas crypto trading platforms for many years, the CFTC’s approval marked the first time the products were cleared for regulated use in the United States.

Popular prediction market for trading, Kalshi received the approval to trade perpetual futures in late May. Since then, Kalshi has expanded its perpetual futures offerings beyond Bitcoin. The company now offers active perpetual contracts for Ethereum (ETH), XRP, Solana (SOL), Chainlink (LINK), Dogecoin (DOGE), Litecoin(LTC), and several others. 

Duffy’s Detailed Explanation of the CFTC’s Flawed Approval

According to Duffy, perpetual futures align more with the legal definition of swaps. Hence, the products should fall under a different regulatory framework. The CEO also noted that CME holds licensing agreements with benchmark providers used across the market. Consequently, similar products must pass through CME if they are correctly classified and listed. 

The outgoing CEO mentioned that internal discussions to challenge the CFTC’s decision have been ongoing for the past eight months. He also noted that the CME Group’s board has been involved in the process and supports the move. The company is also prepared for what could become a lengthy legal battle. Duffy noted that CME prioritized the matter and chose to pursue formal litigation rather than simply accepting the regulator’s decision.

#NEW @CMEGroup to sue CFTC over the approval of perpetual futures as soon as tomorrow.

Outgoing CEO Terry Duffy speaks to Fast Money exclusively on the lawsuit and his decision to retire. https://t.co/g6Kjz4c5bC

— CNBC's Fast Money (@CNBCFastMoney) June 17, 2026

Meanwhile, CFTC Chairman Michael Selig had publicly defended the regulator’s decision to approve perpetual futures. He argued that regulated perpetual futures should be available in the United States. He emphasized that the CFTC’s goal is to ensure that such products operate within a properly supervised market.

Selig stated:

“It’s time to approve regulated futures contracts that have no expiration date. We’re going to make sure the product’s available, but it’s well regulated here in the U.S.”

CFTC Faces Backlash from the Wider Crypto Community 

CFTC oversees key areas including Wall Street commodities, prediction markets, and parts of the fast-growing crypto industry. So far, the agency’s chairman has been using his position to support new crypto products. One such move is the approval of perpetual futures. Selig’s quick decisions to support new products have drawn widespread criticism from crypto market participants. 

Traditional firms have raised concerns about the approval, arguing that the products could become a serious problem for the market. Timothy Massad, the CFTC chairman during Obama’s administration, also raised concerns about the CFTC’s current situation. He said the agency was previously small but performed its roles effectively. “Now it seems more like a train wreck, with its credibility, independence, and the morale of its staff decimated,” he stated.

Advertisement