Are perps swaps? A quick look at that CME suit: State of Crypto
CME Group filed a lawsuit against the Commodity Futures Trading Commission alleging it should not have approved Kalshis perpetual futures contracts the way it did and asking a court to vacate the approval and self-certified products. Youre reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions. Futures or swaps? The narrative CME Group sued the CFTC on Thursday, alleging the agency did not properly consider prediction market provider Kalshis 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. Why it matters 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. CMEs lawsuit is alleging procedural issues, saying how the CFTC went about its approval of Kalshis perps violated Dodd-Frank and risk harming the company. Breaking it down CME is arguing that perps are harmful to its long-dated futures products. The lawsuit alleges








