CME Group, the world's largest futures exchange operator, plans to file a lawsuit against the Commodity Futures Trading Commission (CFTC) on Thursday over its decision to approve crypto perpetual futures, outgoing CEO Terry Duffy told CNBC. Duffy argues that perpetual futures are legally swaps under the Dodd-Frank Act, not futures, and thus should be subject to different rules. The CFTC cleared Kalshi and Coinbase in late May to offer the products to U.S. traders, marking the first time such derivatives are available through domestic regulated exchanges. Duffy claims the CFTC rushed approval without proper review and notes that rival perpetual contracts would rely on CME's licensed benchmarks. CFTC Chair Michael Selig has defended the decision as bringing the crypto market onshore. Duffy warned about risks, comparing the situation to the 2008 financial crisis. The lawsuit is set to be filed on Thursday, as CME also announced Duffy's successor. The case could have significant implications for the regulation of crypto derivatives in the U.S.

Key facts

• CME to sue CFTC on Thursday over approval of crypto perpetual futures.
• Duffy argues perps are swaps under Dodd-Frank, not futures.
• CFTC cleared Kalshi and Coinbase in late May for U.S. perps.
• Duffy warns the market could lead to a 2008-like crash.
• CME names Lynne Fitzpatrick as next CEO, effective March 2027.

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