CME CEO Terry Duffy argues crypto perps are swaps and sues CFTC over contract classification

CME Group CEO Terry Duffy asserts that crypto perpetual futures, or perps, are essentially swaps, a classification that would subject them to stricter post-2008 regulations. CME is suing the Commodity Futures Trading Commission (CFTC) for this classification, despite the CFTC previously approving a Bitcoin (BTC) perp from Kalshi as a futures contract on May 29. Duffy bases his argument on the funding rate, stating, "And that is the definition of a swap." A court ruling on this classification could impact customer collateral protection and support futures-style tax treatment, according to law firm Cahill.