Key Highlights
- Kalshi is pursuing U.S. regulatory clearance for approximately 60 perpetual futures contracts linked to major stocks and ETFs, featuring Tesla, Apple, and Nvidia
- Perpetual futures are leveraged instruments without expiration dates that operate continuously, including during traditional market closures
- While the CFTC greenlit Kalshi’s Bitcoin perpetual contract in May, individual stock perpetuals require dual approval from both the SEC and CFTC
- Citadel Securities has cautioned regulators that these instruments risk establishing a “parallel shadow market” beyond conventional stock market supervision
- Trading volume for leveraged single-stock perpetuals on Hyperliquid exploded from $4 billion to $212 billion since early 2026
[[LINK_START_0]]Kalshi[[LINK_END_0]], a prominent prediction market operator, is aiming to introduce one of cryptocurrency trading’s most favored instruments to traditional U.S. equities. The firm intends to pursue regulatory clearance for roughly 60 perpetual futures contracts connected to prominent stocks and exchange-traded funds.
The proposed instruments, commonly referred to as “perps,” would encompass major corporations such as Tesla, Apple, and Nvidia. According to Kalshi, the company intends to restrict single-company offerings to enterprises with market capitalizations exceeding $100 billion.
Perpetual futures enable market participants to speculate on asset price movements, frequently utilizing leverage. Unlike conventional futures contracts, perpetual futures have no settlement date. Market participants exchange periodic payments to maintain alignment between the contract price and the underlying asset’s spot price.
These instruments would operate continuously, enabling round-the-clock trading. This functionality means a Tesla perpetual could experience price action during evenings and weekends when traditional exchanges like the Nasdaq remain closed.
Kalshi has already established a presence in regulated cryptocurrency perpetuals. The Commodity Futures Trading Commission granted approval for its Bitcoin perpetual instrument in May. This week, Kalshi additionally introduced continuous gold and silver perpetuals offering leverage ratios up to 15x.
Regulatory Jurisdiction Dispute Emerges
Individual stock perpetuals confront more stringent regulatory hurdles compared to cryptocurrency variants. According to existing regulations, futures contracts on specific securities fall under joint oversight by the SEC and CFTC. Consequently, Kalshi must secure authorization from both regulatory bodies before introducing these products.
Citadel Securities entered the discussion this week, submitting correspondence to both agencies advocating that equity-related perpetuals remain under SEC jurisdiction. The trading firm cautioned that transferring oversight elsewhere might establish a “parallel shadow market” isolated from the monitoring infrastructure employed throughout U.S. equity and options markets.
The apprehension centers on the possibility that individuals possessing material nonpublic information could execute trades on stock perpetuals outside regular hours, when traditional markets are inactive and regulatory visibility diminishes.
Industry Observers Highlight Retail Investor Vulnerabilities
Industry watchdogs have expressed concerns regarding potential financial losses. Better Markets securities policy director Benjamin Schiffrin noted there exists “the potential for huge losses, especially amongst individual investors,” given that market participants can establish leveraged positions at any time.
Kalshi maintains its leverage offerings align with traditional futures products and remain below levels available on numerous offshore exchanges. CEO Tarek Mansour has characterized perpetuals as “the purest form of trading.”
The jurisdictional dispute has already moved into litigation. CME Group initiated legal action against the CFTC in June challenging the agency’s authorization of Kalshi’s cryptocurrency perpetuals, contending they should be classified as swaps. The CFTC dismissed the lawsuit as “frivolous” while Kalshi characterized it as competitive anxiety.
Trading volume for leveraged single-stock perpetuals on cryptocurrency platform Hyperliquid skyrocketed from $4 billion to $212 billion since early 2026, per Blockworks Research data referenced by the Wall Street Journal.
Kalshi has not provided a response to requests for comment.
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