CFTC Cites 23% Rise in CME Crypto Futures Volume in Kalshi Case

The Commodity Futures Trading Commission (CFTC) is citing a 23% rise in Chicago Mercantile Exchange Inc.’s (CME) monthly crypto futures volume to argue that CME has not shown financial harm from the approval of Kalshi’s Bitcoin perpetual contract.

The agency’s reply brief, filed Oct. 16, put CME’s volume at about 2.66 million contracts in May and 3.28 million in September. The CFTC is asking a federal judge to dismiss CME’s challenge, arguing the exchange has not shown the approval caused competitive harm. The volume figures add detail to the CFTC’s earlier no-harm argument.

CME sued after the CFTC approved KalshiEX LLC’s BTCPERP contract as a future on May 29. The contract tracks the spot price of Bitcoin (BTC) and has no fixed expiration date. CME argues that contracts without expiration dates should be classified as swaps instead.

CME has said its customers had not asked for perpetual futures. U.S. District Judge Colleen Kollar-Kotelly will decide whether the lawsuit proceeds; the court has not ruled on the dispute.