The CFTC filed on September 2, 2026, a formal motion to dismiss the lawsuit brought by the CME over its approval of Kalshi and Coinbase’s perpetual futures. The federal agency, now led by a sole commissioner, defends a pro-innovation stance against historical derivatives players.
🔑 Key Takeaways
- The CFTC moves to dismiss CME’s lawsuit, calling the case « frivolous »
- Perpetual futures volume surged 29% in 2025 to reach $61.7 trillion, per CryptoQuant
- Kalshi surpassed $1 billion in volume across its perpetuals within a single week of launch
- Selig is now the sole CFTC commissioner, an unprecedented institutional configuration
- CME contests the opening of the market to Kalshi and Coinbase for Bitcoin-backed perpetuals
CME strikes back against crypto challengers
The Chicago Mercantile Exchange (CME) filed suit against the CFTC in June 2026 after the agency indicated on June 18 that it would not object to Coinbase offering its foreign crypto-backed perpetual futures to US investors. CME had already seen Kalshi launch perpetual contracts on Bitcoin and other assets, an initiative perceived as direct competition against the traditional derivatives giant.
The perpetual contracts dispute
CME argues that the CFTC bypassed the existing regulatory framework by allowing Kalshi and Coinbase to offer perpetual futures without the required license. The case crystallizes a clash of two visions: on one side, a historical regulated-derivatives player defending its turf; on the other, a federal agency leaning pro-innovation under the Trump administration. The lawsuit amounts to « lawfare, » according to the CFTC.
The CFTC’s forceful defense
In its September 2, 2026 motion, the CFTC does not merely request the dismissal of the complaint. The agency calls the legal action « frivolous » and frames it as an obstacle to the Trump administration’s pro-innovation agenda. The tone is unusually forceful, signaling an openly political power play.
« Rather than compete in the marketplace, the CME has decided to undertake lawfare against the agency and the Trump Administration’s pro-innovation agenda. Incumbents fear the future and having to compete on a level playing field. »
CFTC spokesperson
Kalshi and Coinbase weigh in
Elisabeth Diana, Kalshi’s spokesperson, pushed back by framing the lawsuit as a competition-driven move:
« This isn’t about the law, it’s about the fear of competition. »
Elisabeth Diana, Kalshi spokesperson
On the Coinbase side, Faryar Shirzad, chief policy officer, welcomed the CFTC’s decision to bring modern contract structures onshore for American investors:
« Competition and innovation are the bedrock of vibrant financial markets and we commend the CFTC for onshoring modern contract structures that benefit American investors. »
Faryar Shirzad, Chief Policy Officer at Coinbase
An exponentially growing perpetual futures market
Global perpetual futures volume jumped 29% in 2025 to reach $61.7 trillion, according to CryptoQuant data. The momentum is confirmed by the launch of Kalshi’s products, whose perpetuals crossed the $1 billion volume mark within just over a week, across more than a dozen contracts.
| Indicator | Volume | Period |
|---|---|---|
| Global perpetual futures market | $61.7 trillion | Full year 2025 |
| Kalshi perpetuals (launch) | >$1 billion | First week |
| CME Bitcoin futures (benchmark) | n/a | 2025 |
| Year-over-year market growth | +29% | 2024 → 2025 |
Bitcoin at the center of the new contracts
Bitcoin remains the reference asset for the new perpetual contracts launched by Kalshi. Coinbase, for its part, offers crypto-backed perpetual futures aimed at US investors following the CFTC’s June 18 green light. This offering directly competes with CME’s classic futures contracts, which have dominated the institutional segment for years. The battleground now spans fees, liquidity, and API access — all strategic levers for retail and institutional traders alike.
A CFTC in institutional transition
The CFTC is going through an unusual period: with the progressive departure of the other commissioners, Selig remains the sole member of the leadership team, even though the agency normally counts five. This configuration has not prevented the CFTC from making landmark decisions, such as the June 18 indication on Coinbase perpetuals or the September 2 motion to dismiss the CME lawsuit.
The prediction markets front
In parallel, the CFTC must handle several proceedings with US states regarding prediction markets, which some state regulators consider a form of gambling. The topic remains politically sensitive and fuels the debate on the expansion of the agency’s scope under the Trump era, at a time when several states are seeking to regulate Kalshi and its competitors.
Toward a redefined US market for crypto derivatives
The CFTC’s motion is a major test for the future of perpetual futures in the United States. If the courts side with the agency, Kalshi and Coinbase will be able to consolidate their position in a market worth over $61.7 trillion in 2025, and the Trump administration’s pro-innovation agenda will come out strengthened. Conversely, a rejection of the motion would open a period of uncertainty for crypto platforms and slow down the current regulatory momentum. The coming months will be decisive in determining whether Bitcoin-backed perpetual contracts become a fully-fledged US financial product — or remain confined to a niche segment regulated by the CFTC.
Sources
- The Block — CFTC files to dismiss CME lawsuit
- Bloomberg — CME sues CFTC as perpetual futures battle heats up
- Reuters — CME sues US CFTC over Kalshi and Coinbase perpetuals
- CNBC — CME CEO Terence Duffy on the lawsuit
- Dechert OnPoint — Addendum on perpetual contracts
This article is published for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decision.
