The US Commodity Futures Trading Commission (CFTC) has filed a motion in court to shut down CME Group’s lawsuit over the approval of Kalshi’s perpetual Bitcoin futures. The regulator argues CME hasn’t shown any real competitive harm, and points out that CME itself could launch a similar product if it wants. Meanwhile, CME insists these contracts should be classified as swaps and fall under a different regulatory framework.

What happened

The CFTC has asked the court to dismiss CME Group’s lawsuit, which challenges the approval of Kalshi’s perpetual Bitcoin futures. The regulator’s motion aims to end the case early, before it gets any further.

Where both sides stand

The CFTC says CME hasn’t provided convincing evidence that competition would be hurt by Kalshi’s product. The agency also notes that CME has the option to roll out a comparable offering. CME, on the other hand, maintains that these contracts are swaps and should be regulated separately under different rules.

What it means for the derivatives market

This dispute centers on whether perpetual contracts should be treated as futures or swaps, which affects how they’re regulated in the US. The legal classification will decide what rules and infrastructure these products fall under—and how they get listed for trading.