CME lawsuit against CFTC edges toward injunction in crypto futures battle

TD Cowen analyst Jaret Seiberg warned that the CME lawsuit against CFTC is tilting in the exchange’s favor.

CME lawsuit against CFTC gains momentum

The Chicago Mercantile Exchange is poised to request a preliminary injunction that would halt trading of crypto perpetual futures while the case proceeds.

“We expect CME will seek a preliminary injunction to block perps as the case proceeds,” Seiberg told Bloomberg.

Market data shows CME’s 2023 derivatives volume rose ↑ 12%, underscoring its entrenched position. By contrast, the CFTC’s enforcement budget slipped ↓ 5% last year, limiting its leverage. Analysts note that the legal precedent could reshape the regulatory framework for digital derivatives. For further context, see Reuters and Bloomberg. Correction: An earlier dispatch misstated the timing of the injunction filing.

Words by Chloe Winters (Venture Capital & Innovation Reporter).