The Hyperliquid Policy Center has urged a U.S. federal court to dismiss CME Group’s lawsuit challenging the Commodity Futures Trading Commission’s approval of cryptocurrency perpetual futures on a U.S.-regulated exchange.
In an amicus brief filed Wednesday, the policy group identified two central flaws in CME’s case. Former U.S. Solicitor General Elizabeth Prelogar, now with Cooley LLP, represented the group in the filing. The case centers on the CFTC’s approval of a Bitcoin perpetual futures contract offered by Kalshi.
Standing Argument Takes Center Stage
The first argument concerns whether CME has suffered an injury that gives it legal standing to sue.
The Hyperliquid Policy Center argues that CME is relying on competitor standing, which generally requires government action to intensify competition in an existing market and create an economically direct injury.
The group says the CFTC’s decision did the opposite. Rather than dividing a fixed market, it expanded access to perpetual futures and could attract traders who previously did not participate in traditional dated futures.
The filing also argues that the CFTC did not introduce a new competitor because Kalshi has operated as a CFTC-regulated exchange since 2020.
CEA Interests Could Undermine CME’s Case
The second argument challenges whether CME’s interests fall within the protections of the Commodity Exchange Act.
The policy center says the law promotes responsible innovation and fair competition among exchanges. It also argues that provisions covering swaps were designed to increase transparency and oversight.
According to the filing, CME’s effort to prevent a rival from introducing an innovative product conflicts with those objectives.
The dispute could have broader consequences for U.S. derivatives markets. The CFTC has increasingly explored bringing blockchain-based financial markets onshore, including markets that trade, clear and settle through public blockchains.
CME’s lawsuit seeks to challenge the regulatory classification of perpetual contracts, arguing that crypto perpetuals should be treated as swaps rather than futures. The CFTC has separately asked the court to dismiss the case, arguing that CME can offer similar products itself.
The court’s decision could therefore shape how quickly perpetual futures and other blockchain-based derivatives develop within regulated U.S. markets.
