CME, Cboe Sue CFTC Over 24/7 Perpetual Futures as $61.7 Trillion Crypto Market Expands
Updated
Updated · Reuters · Nov 9
CME, Cboe Sue CFTC Over 24/7 Perpetual Futures as $61.7 Trillion Crypto Market Expands
3 articles · Updated · Reuters · Nov 9
Summary
CME Group and a Cboe-Citadel-backed trade group have sued the CFTC after it approved US crypto perps in May and single-stock equity perps last week.
Wall Street incumbents argue perpetual futures are misclassified as futures rather than swaps, letting leveraged retail products reach the market under lighter margin, capital and reporting rules.
24/7 trading and auto-liquidation features are driving the risk warnings, with executives saying round-the-clock margin calls and forced liquidations could strain clearing, liquidity and US market infrastructure.
Kalshi, Coinbase and Robinhood are among firms expanding into the market, while supporters say keeping perps onshore is safer than leaving activity offshore.
Crypto perp volume hit $61.7 trillion in 2025, and the fight could intensify as Democrats, newly in control of Congress, prepare tougher oversight of crypto and prediction markets.
Could the CFTC's bold approval of nonstop trading trigger the next massive liquidation crisis in traditional finance?
Will Wall Street's lawsuit successfully kill the 24/7 perpetual futures market before it revolutionizes U.S. trading?
Are legacy exchanges suing to protect investors, or just desperate to maintain their monopoly against agile crypto rivals?
2026’s Perpetual Futures Crisis: CFTC, SEC, and Wall Street Collide Over $862 Trillion in Derivatives
Overview
In 2026, the CFTC approved Kalshi’s Bitcoin perpetual futures, sparking a wave of legal and regulatory conflict. After Kalshi, Coinbase Derivatives, and Bitnomial filed for equity perpetual futures, traditional exchanges like CME, Nasdaq, and Cboe objected, warning these products lacked expiration dates and proper oversight. Despite these objections, the CFTC allowed the products, leading to lawsuits from industry groups. A federal judge found the challengers likely to succeed, arguing perpetuals resembled SEC-regulated swaps. Meanwhile, market shifts—like the unwinding of the CME basis trade—highlighted how new perpetual products and 24/7 trading are reshaping U.S. financial markets and regulatory boundaries.