CME Group Chief Executive Terrence Duffy announced plans to sue the U.S. Commodity Futures Trading Commission (CFTC) after it approved perpetual futures products for Kalshi earlier this month. In an interview with CNBC on Wednesday, Duffy argued that the CFTC's approval violated the Dodd-Frank Act, which defines swaps and futures differently. He stated that perpetual futures, involving two parties exchanging payments, should be classified as swaps rather than futures under the law, and thus subject to stricter requirements. Duffy, who is stepping down next year, said CME would consider listing its own perpetual futures only after regulatory clarity, which he deemed currently lacking. He also accused the CFTC of misrepresenting facts, citing its release on 24/7 trading as an example where the agency presented a non-rule as a rule. The dispute highlights ongoing tensions between traditional derivatives exchanges and new crypto-friendly products.

Key facts

• CME CEO Terry Duffy plans to sue CFTC over perpetual futures approval for Kalshi.
• Duffy claims perpetual futures are swaps under Dodd-Frank, not futures.
• CME will not list its own perpetual futures until regulations are clear.
• Duffy accuses CFTC of misrepresenting facts, citing 24/7 trading release.
• The dispute reflects tension between traditional exchanges and crypto products.