Are perps swaps? A quick look at that CME suit: State of Crypto
Key takeaways
- CME Group sued the CFTC on Thursday, alleging the agency did not properly consider prediction market provider Kalshi's application to list perpetual futures contracts before granting the application.
- It is — not to put too fine a point on it — somewhat unusual for a company as established as CME to sue its primary regulator.
- CME is arguing that perps are harmful to its long-dated futures products.
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CME Group sued the CFTC on Thursday, alleging the agency did not properly consider prediction market provider Kalshi's application to list perpetual futures contracts before granting the application. The suit came a day after outgoing CEO Terry Duffy announced it would file over the approval granted at the end of May.
It is — not to put too fine a point on it — somewhat unusual for a company as established as CME to sue its primary regulator. Perpetual futures, otherwise known as perps, are relatively new and the crypto industry is a major part of these contracts. CME's lawsuit is alleging procedural issues, saying how the CFTC went about its approval of Kalshi's perps violated Dodd-Frank and risk harming the company.