The US Bitcoin perpetual contract market has just opened, and conflicts over regulation and competition have already escalated rapidly. CME has stated that it will file a lawsuit against the US Commodity Futures Trading Commission (CFTC) for approving Kalshi's launch of Bitcoin perpetual contracts, arguing that such products should not be treated as futures.
CME questions product categorization
In an interview, CME CEO Terry Duffy stated that the Bitcoin perpetual contract approved for Kalshi is closer to a swap than a traditional futures contract. According to him, this distinction is not a technical detail but directly relates to applicable regulatory requirements.
CME's core argument is that swaps are subject to stricter regulation under US law, particularly within the framework of the Dodd-Frank Act. Treating perpetual contracts as futures could significantly lower the regulatory threshold.
The US market has just seen the emergence of regulated perpetual contracts.
Perpetual contracts have long been prevalent in crypto markets outside the United States. These products have no expiration date, allowing traders to hold positions indefinitely, and have therefore long been an important type of digital asset derivatives trading.
In the United States, regulated crypto perpetual contracts have been relatively rare. This situation only changed in May of this year when the CFTC approved Kalshi's launch of Bitcoin perpetual contracts. Since then, Coinbase has also announced plans to launch a similar product.
The controversy is not limited to investor protection.
CME stated that one reason for opposing the entry of such products into the market is the higher risk for retail investors. Their concerns mainly focus on high leverage, automatic liquidation mechanisms, and some traders' insufficient understanding of funding rates and leverage structures.
However, this case is also seen as a battle for control of the US cryptocurrency derivatives market. CME has long dominated the regulated futures market in the US, and if platforms such as Kalshi and Coinbase successfully launch cryptocurrency perpetual contracts, they could directly compete with traditional exchanges.
Additional information:If CME formally files a lawsuit, this case could become one of the major legal controversies in the field of US cryptocurrency derivatives regulation in 2026, with the focus on whether Bitcoin perpetual contracts should be regulated as swaps or futures.
