CFTC says CME failed to prove harm caused by the perpetual contracts policy
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CFTC says CME failed to prove harm caused by the new perpetual contracts policy and therefore lacks standing to sue.
Article
United States CFTC Rebutting CME's standing to sue, saying it failed to prove harm from the new perpetual-contract policy
PANews October 20 News, according to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint with the court last Friday, stating that CME (CME) failed to prove that it was harmed by CFTC's new perpetual-contract policy and therefore lacks standing to sue.CFTC stated that following the policy adjustment,CME's crypto futures trading volume increased rather than declined, and CME had previously told investors during an earnings call that it had not seen demand for perpetual contracts and that the two are not substitutes.CFTC This year,May approved Kalshi's launch of the first Bitcoin perpetual contract in the United States, stating that such products would be regulated on a case-by-case basis as futures.CME by contrast, considers perpetual contracts to be swaps, as they have no expiration date.CFTC requested that the judge dismiss the case last month.TD Cowen analyst Jaret Seiberg said that the perpetual-contract market has continued to expand during the litigation, and if...
CFTC filed a court brief last Friday, stating that CME failed to prove that it was harmed by the new perpetual contracts policy and therefore lacks standing to sue.
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CFTC said that, following the policy adjustment,CME's crypto futures trading volume rose rather than fell.
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CFTC said that CME had told investors during an earnings call that it had not seen demand for perpetual contracts and that the two are not substitutes.
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CFTC This year,May approved Kalshi's launch of the first Bitcoin perpetual contract in the United States, stating that such products would be regulated on a case-by-case basis as futures.
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CME believes perpetual contracts have no expiration date and should be regulated as swaps.
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CFTC requested that the judge dismiss the case last month.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The parties' dispute encompasses issues:CFTC believes that CME has not demonstrated that the new policy caused it actual harm and therefore has no right to continue the lawsuit;CME believes that perpetual contracts without an expiration date should be regulated as swaps rather than futures. The evidence currently presents only the parties' claims and provides no court ruling.
Why it matters to readers
The case concerns how the United States should regulate perpetual contracts and may affect whether such products are regulated on a case-by-case basis as futures or classified as swaps.
Beginners should distinguish between a regulator's litigation claims and a court's final ruling; this article provides no Bitcoin price or market trading reaction.
Risks and unknowns
The main text is truncated at Jaret Seiberg's comments, making it impossible to confirm his complete views.
The original court filing was not provided, making it impossible to independently verify all arguments by both parties.
Whether the court will accept CFTC's request for dismissal has not been stated.
The case's ultimate outcome and the final regulatory classification of perpetual contracts remain uncertain.
Related Developments
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Related concepts
Perpetual Contract
A derivative contract with no expiration date, designed for continuous holding, whose funding rate mechanism helps keep its price close to that of the underlying asset.
