CME CEO Signals Legal Challenge Against CFTC Over Perpetual Futures Approval

CME Group CEO Terrence Duffy said the company intends to challenge the U.S. Commodity Futures Trading Commission (CFTC) in court following the regulator’s approval of perpetual futures contracts earlier this month.

Speaking with CNBC on Wednesday, Duffy argued that the CFTC’s approval of Kalshi’s perpetual futures product conflicts with the framework established under the Dodd-Frank Act. According to him, the product more closely resembles a swap than a futures contract and therefore should be subject to a different set of regulatory requirements.

Duffy pointed to the Dodd-Frank Act’s distinction between swaps and futures, noting that agreements involving the exchange of payments between two parties generally fall under the definition of swaps. As a result, he contended that the approved products should not have been classified as futures contracts.

The outgoing executive, who is scheduled to leave CME next year, said the company would first need greater regulatory clarity before considering launching its own perpetual futures products. He added that the current rules surrounding such instruments remain uncertain.

When asked whether the CFTC had mischaracterized certain issues, Duffy said he believed the agency had done so to some degree. He specifically referenced the regulator’s statements regarding 24/7 trading, arguing that the CFTC had portrayed the initiative as an established rule despite it not being formally adopted.

“I think there are numerous concerns here,” Duffy said.

In response, a CFTC spokesperson accused CME of resorting to litigation rather than competing in the market. The agency said it welcomed the opportunity to defend its position and expressed confidence that any lawsuit would ultimately be dismissed.

The spokesperson added that the legal challenge appeared to be directed not only at the regulator but also at the Trump administration’s broader push for innovation in financial markets.