CME Group · Coinbase · The Block
TD Cowen confirms CME has the upper hand in suit against CFTC over crypto perpetual futures
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CME Group has the stronger legal case in its lawsuit challenging the U.S. Commodity Futures Trading Commission's approval of crypto perpetual futures, with both procedural and substantive arguments in its favor, according to investment bank TD Cowen.
Key facts
- We believe CME has the upper hand in the litigation," Jaret Seiberg, managing director at TD Cowen's Washington Research Group, said in a note
- CME argues that the Commodity Exchange Act requires a futures contract to involve delivery, or the equivalent, at a set time in the future
- Seiberg also said CME's Administrative Procedure Act arguments appear strong
- The CFTC had previously treated perpetual contracts as swaps and sought public comment on the issue in April 2025, but ultimately approved Kalshi's bitcoin perpetual futures in a single day
Summary
CME Group has the stronger legal case in its lawsuit challenging the U.S. The world's largest derivatives exchange sued the CFTC on Thursday after the agency recently approved crypto perpetual futures, or "perps," in the U.S. for Kalshi and Coinbase. "We believe CME has the upper hand in the litigation," Jaret Seiberg, managing director at TD Cowen's Washington Research Group, said in a note. Seiberg said the dispute is likely to come down to whether a product that never expires, such as a perp, can legally qualify as a futures contract. Seiberg also said CME's Administrative Procedure Act arguments appear strong.