CFTC Defends Dismissal Bid in CME's Kalshi Bitcoin Contract Case

The Commodity Futures Trading Commission is defending its approval of a Bitcoin (BTC) perpetual futures contract as Chicago Mercantile Exchange Inc. challenges whether the product should be regulated as a swap. The CFTC filed a motion to dismiss the case on Sept. 2 and submitted a reply supporting that motion on Oct. 16. The agency argues that CME has not alleged a sufficient competitive injury to bring the challenge. That is the CFTC's legal position, not a court finding. In its reply, the CFTC argued that CME's crypto futures volume rose after the approval. The CFTC also cited CME's statement that it had not heard customer demand for perpetual futures, arguing that this sits uneasily with CME's claim that the contracts pose a competitive threat.

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