Kalshi plans to seek U.S. regulatory approval for roughly 60 perpetual futures tied to individual stocks and exchange-traded funds, potentially bringing one of crypto’s most popular trading products into the traditional equity market.
The prediction-market operator wants to offer perpetual contracts linked to companies including Tesla, Apple and Nvidia, with trading potentially available around the clock. If approved, the products would be the first regulated perpetual futures tied to individual U.S. stocks.
Perpetual futures, commonly known as perps, allow traders to speculate on whether an asset will rise or fall without the contracts having an expiration date. Traders typically use periodic funding payments between buyers and sellers to keep the contract’s price aligned with the underlying asset.
The products have become a major part of the crypto trading industry since BitMEX introduced them in 2016. Platforms such as Hyperliquid now allow traders to take leveraged positions on bitcoin and hundreds of other tokens at any time.
A Tesla perpetual contract, for example, could continue trading overnight and throughout weekends while Tesla shares remain closed on Nasdaq. That would provide a continuous indication of market sentiment toward the company even when the underlying stock market is not operating.
The proposal, however, raises a major regulatory question in the United States. Regulators must determine whether stock-linked perpetual contracts should be treated as futures under the Commodity Futures Trading Commission or as securities-related products under the Securities and Exchange Commission.
Kalshi received CFTC approval in May for a bitcoin perpetual contract. The agency classified the product as a futures contract but cautioned that the same structure may not be appropriate for every asset class. It said perpetual contracts linked to other types of assets should be reviewed individually.
Citadel Securities has challenged the idea of moving stock-linked perps outside SEC oversight. In a letter sent Thursday to the SEC and CFTC, the trading firm argued that products tied to U.S. public companies should remain under the SEC’s jurisdiction.
Citadel warned that shifting such products to another regulatory framework could create a “parallel shadow market” that is disconnected from the surveillance systems used for U.S. stocks and options.
The firm highlighted potential risks involving companies such as Nvidia and Tesla. For example, someone with undisclosed earnings information could potentially trade a perpetual contract while the underlying stock market is closed. Similarly, a company could release significant news during a trading halt while its perpetual contract continues moving unless the two markets are properly coordinated.
Citadel also argued that SEC oversight currently links trading activity across stocks, options and related markets, helping regulators detect potential insider trading and attempts to influence one market through another.
The firm added that safeguards involving trading halts, order handling and market access may not automatically apply if equity-linked perpetual contracts operate under a separate regulatory framework.
The dispute highlights a broader challenge as crypto-style 24/7 trading expands into traditional markets. Crypto traders are already accustomed to leveraged perpetual contracts operating continuously, but regulators must now determine how such products can function when the underlying stocks still trade only during established market hours.
About The Author
More Stories
Core CPI Climbs 0.3% in August, Raising Odds of Fed Rate Hike
Bitcoin Rebounds Toward $77,300 as Zcash Leverage Unwinds
Bitcoin Retreats as Latest Golden Cross Fails to Spark a Rally