CME Group CEO Plans Lawsuit Against CFTC Over Perpetual Futures

Terence Duffy, the CEO of CME Group, announced during an appearance on CNBC’s “Fast Money” that the exchange operator intends to file a lawsuit against the Commodity Futures Trading Commission (CFTC). This follows the commission’s recent approval of perpetual futures.

Perpetual futures are contracts that don’t have an expiration date, allowing traders to speculate on prices without actually owning the underlying assets. This approval marks a significant development in the U.S., as such contracts have been popular in other countries. Recently, Kalshi, a prediction market platform, expanded its offerings to include these contracts for Bitcoin and other cryptocurrencies.

Duffy contends that these perpetual futures should be classified as swaps under the provisions of the Dodd-Frank Act. He intends to base CME’s legal action on this classification, with plans to file the lawsuit on Thursday.

During the segment, Duffy stated, “We have exclusive licenses with all the providers of benchmarks, which means they have to go through CME, regardless of whether they are permanent or not.” He further emphasized the implications this could have, suggesting that if the CFTC pushes forward with this, all such contracts would need to be categorized as swaps.

Duffy, who has announced his resignation as CEO effective March 2027, mentioned he has been preparing for this fight alongside the board for several months. “I’ve never shied away from conflicts, and I won’t start now,” he asserted. “That’s why I chose to make this announcement on air—this lawsuit isn’t something we’re taking lightly.”

The CFTC has not yet responded to requests for comment regarding this issue. Earlier in the week, CFTC Chairman Michael Selig defended the decision to approve perpetual futures, stating, “The time has come for regulated futures contracts without expiration dates. We aim to ensure the product is available while keeping stringent regulations in place here in the U.S.”