Kalshi Bitcoin Perpetual Contract Gains Support as CFTC Calls CME Lawsuit "Much Ado About Nothing"

According to Bitcoin News, the U.S. Commodity Futures Trading Commission (CFTC) has requested the Washington, D.C. district court to dismiss a lawsuit filed by the Chicago Mercantile Exchange (CME) against Kalshi's Bitcoin perpetual futures contract. Kalshi's cash-settled BTCPERP contract, approved on May 29, has no expiration date, employs a funding rate mechanism, and tracks the spot price of Bitcoin. CME argues that contracts without a delivery date and with continuous funding payments should be classified as swaps, not futures. The CFTC responded that CME's lawsuit is "much ado about nothing," noting that CME could also list similar products. Additionally, the CFTC stated that CME Bitcoin futures trading volumes in June and August were both higher than in May, indicating no significant impact on its related business. CME must file its response by October 2.