TD Cowen: CME Has Stronger Legal Case in Lawsuit Against CFTC Over Crypto Perpetual Futures
By
Yogita Khatri
Summary
Investment bank TD Cowen has analyzed the legal dispute between CME Group and the CFTC over crypto perpetual futures, concluding that CME has the stronger case both procedurally and substantively. CME sued the CFTC after the agency approved perpetual futures (perps) for Kalshi and Coinbase, arguing that the Commodity Exchange Act requires futures contracts to involve delivery at a set future time, which perpetuals do not. TD Cowen expects CME will seek a preliminary injunction to block perps as the case proceeds.
Source
Twitter / XTD Cowen: CME Has Stronger Legal Case in Lawsuit Against CFTC Over Crypto Perpetual Futurestheblock.coKey quotes
· 3 pulledCME Group has the stronger legal case in its lawsuit challenging the U.S. Commodity Futures Trading Commission's approval of crypto perpetual futures, with both procedural and substantive arguments in its favor, according to investment bank TD Cowen.
We expect CME will seek a preliminary injunction to block perps as the case proceeds, said TD Cowen's Jaret Seiberg.
CME argues that the Commodity Exchange Act requires a futures contract to involve delivery, or the equivalent, at a set time in the future.
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