Woofun AI reports that CME Group CEO Terrence Duffy intends to file a lawsuit against the Commodity Futures Trading Commission regarding its authorization of crypto perpetual futures. Duffy disclosed this strategic move on CNBC, asserting that these instruments should be classified as swaps rather than futures contracts under the Dodd-Frank Act. The legal challenge directly follows the CFTC’s recent approval of perpetual futures offerings from platforms including Kalshi and Coinbase.

Duffy argued that the exchange of payments between parties in perpetual contracts meets the statutory definition of a swap. He further contended that CME’s exclusive licensing agreements with benchmark providers necessitate that products tied to those benchmarks operate through CME. While Duffy stated that the board has prepared this legal challenge for eight months, he dismissed suggestions that the lawsuit stems from recent competitive pressures. Conversely, CFTC Chair Michael Selig defended the agency’s stance, emphasizing the need for regulated perpetual futures within U.S. markets. A CFTC spokesperson labeled the planned litigation frivolous, setting the stage for a significant judicial determination on the classification of Bitcoin and other crypto derivatives.