CME Sues CFTC Over Crypto Perpetual Futures Approval on June 18, Citing 2008 Financial Crisis Risk

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CME Group announced plans on June 18 to sue the Commodity Futures Trading Commission over its decision to approve regulated crypto perpetual futures platforms including Kalshi, Coinbase, and Kraken. CME CEO Terrence Duffy argued on CNBC's Fast Money that perpetual futures are effectively swaps under the Dodd-Frank framework and should not bypass existing derivatives rules. Duffy warned that high leverage levels and automatic liquidation mechanisms create systemic risks similar to conditions preceding the 2008 financial crisis. The CFTC, led by Chair Michael Selig, defended the approval as bringing a massive offshore market under domestic regulatory oversight.
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