CME Group (CME Group), the largest derivatives exchange operator in the United States, has filed a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC) and its Chairman, Mike Selig, challenging the CFTC’s previous decision to approve the listing of crypto perpetual futures on the prediction market platform Kalshi and the cryptocurrency exchange Coinbase.CME argues that these products have been misclassified and alleges that the CFTC failed to adequately consider their impact on traditional long-term futures products when granting approval, as futures products are supposed to have expiration dates, whereas perpetual futures do not. Against this backdrop, the CFTC also blocked CME’s earlier request for expedited approval of 24/7 trading in crude oil futures.This legal battle could have significant implications for how the United States regulates the rapidly growing on-chain derivatives market.