CME Group Challenges CFTC Over Cryptocurrency Perpetual Futures Approval

CME Group plans to file a lawsuit against the Commodity Futures Trading Commission (CFTC) over its approval of cryptocurrency perpetual futures. According to CME Group's outgoing Chief Executive Officer Terry Duffy, the exchange operator is taking issue with how the regulatory agency classified these products.

Duffy argued that perpetual futures should be treated as swaps under the Dodd-Frank Act, which would require different clearing and reporting rules. 'Under the Dodd-Frank Act, it clearly defines what a swap is and what a future is, and when there's two parties exchanging payments to each other, that's deemed a swap,' Duffy said.

CME Group has criticized the CFTC for its expedited review processes, but notes that competing instruments will still utilize its exclusive market benchmarks. The executive expressed concern about systemic financial risks associated with these new trading structures.