Chicago Mercantile Exchange filed its opposition on October 2 to the CFTC’s attempt to dismiss a lawsuit over the approval of Kalshi’s bitcoin perpetual futures. The filing advances a dispute in federal court in Washington concerning the regulator’s treatment of contracts without an expiry date. CME challenges the May approval and related policy, arguing that the agency’s approach to classifying perpetual contracts departs from the legal framework governing derivatives and competing exchanges.

The CFTC’s dismissal request contests whether CME has established the injury and legal standing required to bring the challenge. CME’s new memorandum responds to that motion, which raises both jurisdictional issues and arguments that the complaint fails to state a claim. The October document is therefore a litigation step rather than a judgment on the contracts themselves. The court had not issued a ruling on the dismissal request in the record reviewed for this article.

At the center of the dispute is whether the approved bitcoin perpetuals should be treated as futures rather than swaps. The classification affects which requirements apply to a venue listing the product. CME alleges the approval created an unfair competitive advantage and changed the agency’s position without an adequate explanation or the required process. Those arguments put administrative procedure alongside product design, with the regulator defending the legality of its approval.

For Kalshi, the case concerns the regulatory basis for a specific derivatives offering. For CME, it addresses the conditions under which competing platforms can introduce a product with cryptocurrency-market origins. The October opposition keeps the challenge moving through the court’s briefing process. A decision on dismissal will determine which parts, if any, proceed further, while a broader ruling on the merits would require additional consideration of the challenged approval and its legal foundation.