Jake Cherbinski accused CME Group of using litigation against US crypto perpetual futures to protect its position in a market where it allegedly controls about 92% of the derivatives trading volume traded on its exchanges.
Jake Cherbinski, CEO of HyperLiquid Policy Center, said CME’s legal challenge to the U.S. Commodity Futures Trading Commission underscores his view of increasing competition in derivatives markets.
In a June 19 post on X, Cherbinski called CME’s lawsuit against the CFTC a “shocking miscalculation” and an “unforced error.” The exchange, long considered a dominant force in the U.S. derivatives market, has revealed itself to be a “small incumbent monopoly afraid of competition,” he wrote.
His comments came after CME Group sued the CFTC and Chairman Michael Selig over regulatory approval of crypto perpetual futures products in the United States. As previously reported by crypto.news, CME alleges that under the framework established by the Dodd-Frank Act, CME incorrectly classified perpetual contracts as futures rather than swaps.
The lawsuit follows the launch of a regulated perpetual futures product that has already generated more than $1 billion in trading volume, according to previous crypto.news reporting.
Hyperliquid claims CME is resisting new competition
In a June 18 X post, HyperLiquid Policy Center cited Better Markets data estimating that CME accounts for approximately 92% of U.S. exchange-traded derivatives trading volume.
“CME operates about 92% of U.S. exchange-traded derivatives trading. When one venue carries that much volume, other venues pick up the cost. There are fewer options and prices are higher.”
The group pointed to the history of perpetual futures trading, saying that for years U.S. traders have been forced to access similar products through offshore exchanges while regulated products are unavailable domestically. The statement added that regulators have only recently created a compliant pathway for these products to enter the U.S. market.
For years, Americans were forced overseas to trade perpetual futures, while the rest of the world was able to trade perpetual futures in their own countries. This spring, U.S. regulators finally opened a compliant path to these markets here. Today, CME, the largest exchange in the United States, went to court seeking closure.
this…
— Hyperliquid Policy Center (@HyperliquidPC) June 18, 2026
Chervinsky argued that CME’s decision to sue the regulator shows that the exchange is trying to protect its existing position as competition enters the market. Perpetual futures are the first truly new derivatives product to enter the U.S. regulated market in more than a decade, according to the HyperLiquid Policy Center.
The HyperLiquid Policy Center cited CFTC Chairman Michael Selig as saying that incumbent companies often resist new competition. The organization said Selig said that “vested interests are always afraid of the future,” but argued that market participants should not fear incumbents.
CME argues that perpetual contracts fall under swap rules
CME has offered a different view in court filings and public statements.
As previously reported by crypto.news, the exchange argues that perpetual futures should be regulated as swaps rather than traditional futures contracts.
Earlier this week, outgoing CME CEO Terrence Duffy told CNBC that the company was planning legal action after the CFTC allowed platforms like Coinbase and Calsi to offer regulated crypto perpetual futures.
Duffy argued that perpetual contracts fit into the category of swaps created by Dodd-Frank. CME further alleged in its complaint that the CFTC departed from its previous treatment of similar financial products and approved new types of products without following the rulemaking process established by Congress.
At the same time, controversy is unfolding as U.S. regulators reconsider the definitions at the heart of the lawsuit. The CFTC and the Securities and Exchange Commission have now launched a joint public consultation seeking feedback on how swaps, security-based swaps, commingled swaps, and other derivative products should be classified under Title VII of the Dodd-Frank Act.
CFTC Chairman Michael Selig said the review could help resolve “long-standing ambiguities” in the law, while SEC Chairman Paul Atkins said additional clarification was overdue.
The consultation is open for public comment for 60 days after being published in the Federal Register, and regulators are seeking input on how modern derivative products should be treated under existing rules.
