The Hyperliquid Policy Center has intervened in U.S. District Court for the District of Columbia, arguing that CME Group's lawsuit against the Commodity Futures Trading Commission constitutes an attempt to block market expansion rather than defend against genuine competitive harm.
CME initiated the lawsuit, Chicago Mercantile Exchange Inc. v. Selig (case 1:26-cv-02157), before Judge Colleen Kollar-Kotelly to contest the CFTC's approval of Kalshi's perpetual futures contract—the first such product approved for a U.S.-regulated exchange. CME chief executive Terry Duffy has argued that perpetual contracts should be classified as swaps, not futures, positioning the exchange's legal challenge around regulatory classification.
In a September 9 brief filed by former Solicitor General Elizabeth Prelogar of Cooley LLP, HPC identifies two structural defects in CME's legal argument.
On standing, HPC asserts CME relies on competitor standing doctrine, which applies only when government action intensifies competition within a fixed market. The brief argues the CFTC's order instead enlarged the market by attracting participants who would not have traded dated futures contracts. Kalshi has operated as a CFTC-regulated exchange since 2020, meaning the regulatory approval did not introduce a new competitor but expanded total addressable market—undercutting CME's injury claim.
On zone of interests under the Commodity Exchange Act, HPC contends CME's position falls outside CEA protections. The act's stated purposes include promoting responsible innovation and fair competition among exchanges. CME's effort to block a rival's innovation directly frustrates these legislative objectives, the brief argues.
HPC notes that the CFTC's own dismissal motion characterized CME's claimed injuries as "entirely self-inflicted" and that CME has not argued it is unable to list perpetual futures itself. The brief reinforces this commercial point: every U.S. derivatives exchange, including CME, has the option to list perpetual futures contracts. CME's decision not to offer such products, HPC states, undermines its standing claim.
The Hyperliquid Policy Center, established in Washington this year, represents a protocol whose core business is perpetual futures. The brief explicitly cites the CFTC's ongoing work to bring on-chain markets—which trade, clear and settle on public blockchains—onshore. HPC asserts that such initiatives would face identical legal challenges from any incumbent exchange unwilling to adopt new market structures.
