CME’s Terry Duffy takes aim at prediction markets, perpetual futures and lighter oversight
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The evolving landscape of derivatives markets may lead to stricter regulations, impacting innovation speed and compliance burdens for crypto platforms.
CME Group Inc. logo (public domain, Wikimedia Commons)
The exchange chief wants regulators to review new derivatives before launch as CME fights the CFTC in court over crypto perpetuals
Tue 20 Oct 2026 · 04:05 EDT · 2 min read
In Regulation
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CME Group Chairman and CEO Terry Duffy criticized the state of US derivatives regulation in an appearance on Bloomberg’s Odd Lots released October 20, pointing to prediction markets, perpetual futures and round-the-clock trading as the forces reshaping the industry.
Duffy has argued that event contracts listed by platforms such as Kalshi blur the line between hedging and gambling, and has pushed for regulators to review new derivatives before they launch rather than allowing exchanges to self-certify them. Earlier this month, he called the Commodity Futures Trading Commission’s effort to assert authority over prediction markets “a bit of a stretch,” PANews reported, adding: “This will go to the Supreme Court, and I think the states and the tribes will have the upper hand.”
CME is suing the CFTC over perpetual futures
CME sued the CFTC in June after the regulator approved crypto-linked perpetual futures from Kalshi, arguing the products function like swaps. Duffy clashed publicly with CFTC Chair Michael Selig in August, saying people were manipulating prediction market contracts, a criticism Selig dismissed as “fake news,” Bloomberg reported.
The issue carries competitive weight. CME’s rival Intercontinental Exchange has invested more than $1.6 billion in Polymarket, and state regulators are separately challenging sports event contracts, with Utah suing Kalshi on October 20.
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CME itself has embraced continuous trading for crypto, launching 24/7 crypto futures and options on May 29. Duffy, who has led the exchange for decades, will step down as CEO next year and become executive chairman, with Lynne Fitzpatrick named as his successor.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.
