CFTC and SEC Request Public Comment on Defining 'Swaps' Amid CME Lawsuit

Jun 19, 2026

The CFTC and SEC are seeking public comment to clarify the definition of "swaps" for derivatives. This move comes less than 24 hours after CME Group sued the CFTC for approving Kalshi's perpetual futures as "futures" instead of "swaps." CME alleges the decision allows unfair competition for retail customers. The outcome of the dispute will determine regulatory oversight and shape the future of the U.S. derivatives market.

CFTC-SEC joint comment request

▪The CFTC and SEC issued a joint request for public comment to clarify definitions for derivatives products like "swaps" and "security-based swaps."
▪The public comment period is set to run for 60 days following its publication in the Federal Register.
▪The request for comment seeks feedback on novel products, including prediction-market event contracts and perpetual futures.
▪SEC Chairman Paul Atkins said clarification on certain definitions, particularly for event-based products, is "long overdue."
▪CFTC Chairman Michael S. Selig stated the request is an opportunity to address "longstanding ambiguities" in Title VII of the Dodd-Frank Act.

CME lawsuit against CFTC

▪The joint request for comment was issued less than 24 hours after CME Group announced its plans to sue the CFTC.
▪The CFTC announced it will seek to have the CME Group lawsuit dismissed.
▪CME Group filed a lawsuit against the CFTC on June 18, 2026.
▪CME Group's lawsuit targets the CFTC's decision to approve Kalshi's perpetual futures products for trading in the U.S.
▪CME Group claims the CFTC's decision allows new entrants to unfairly compete with CME for retail customers.
▪The lawsuit alleges that CFTC Chairman Michael Selig overrode the definition of a "swap" and bypassed the proper regulatory regime.

Perpetual futures classification dispute

▪The CFTC classified Kalshi's perpetuals as futures contracts, a decision CME Group is challenging.
▪CME Group CEO Terrence Duffy has argued that perpetual futures meet the definition of a "swap" under the Dodd-Frank Act.
▪The core of the dispute is whether perpetual futures should be classified as "futures contracts" or as "swaps."

Regulatory implications

▪The classification of perpetual futures as either swaps or futures determines which regulator has oversight and what rules apply.
▪Under Title VII of the Dodd-Frank Act, the CFTC has regulatory authority over swaps, with the exception of security-based swaps.
▪The resolution of the "swap" definition will shape how new companies can enter the U.S. derivatives market.