The U.S. Commodity Futures Trading Commission (CFTC) rejected CME Group's legal argument that perpetual futures contracts are swaps rather than futures, escalating a regulatory battle over the classification of perps. The CFTC's latest filing contends that CME must demonstrate an actual or imminent increase in competition to have standing, asserting that the derivatives exchange has failed to do so. CME maintains that perpetual futures lack expiration dates and should therefore be regulated as swaps under a different framework. However, the CFTC highlighted inconsistencies in CME's public messaging, noting the company has told investors there is no demand for perps while simultaneously challenging their regulation in court. TD Cowen analyst Jaret Seiberg suggested CME may retain advantages in both its competitive standing and its swap classification argument, though the evolving market dynamics continue to pressure traditional exchanges.