CFTC Defends Dismissal Bid in CME's Kalshi Bitcoin Contract Case

The Commodity Futures Trading Commission is defending its approval of a Bitcoin (BTC) perpetual futures contract as Chicago Mercantile Exchange Inc. challenges whether the product should be regulated as a swap. The CFTC filed a motion to dismiss the case on Sept. 2 and submitted a reply supporting that motion on Oct. 16. The agency argues that CME has not alleged a sufficient competitive injury to bring the challenge. That is the CFTC's legal position, not a court finding. In its reply, the CFTC argued that CME's crypto futures volume rose after the approval.