Kalshi Seeks CFTC Approval for WTI Crude Perpetual Futures: Report
Prediction market operator Kalshi is reportedly preparing to seek approval from the U.S. Commodity Futures Trading Commission (CFTC) for a West Texas Intermediate (WTI) crude oil perpetual futures contract that never expires. If approved, it would be the first oil-linked perpetual futures product to trade on a regulated U.S. exchange. According to sources, the contract is expected to trade 24 hours a day, five days a week, marking a departure from traditional fixed-expiration futures contracts.
Kalshi’s New Oil Perpetual Futures Product
Kalshi plans to file with the CFTC as early as next week to introduce a perpetual futures contract for West Texas Intermediate crude oil. This contract would allow traders to hold positions indefinitely without needing to roll over contracts. Such perpetual futures, or "perps," lack expiration dates, providing continuous exposure to the underlying asset.
The contract is expected to trade 24 hours a day, five days per week, distinguishing it from traditional oil futures that have fixed expiration dates and operate within specific trading hours. If approved, it will be the first regulated U.S. platform to list oil-linked perpetual futures.
Regulatory Context and Industry Movements
In June, the CFTC solicited public comment on extending standard futures contracts to 24/7 trading and permitting perpetual contracts linked to physically deliverable or storable energy commodities like crude oil.
In July, the regulator paused the self-certified listing from CME Group introducing 24/7 crude oil futures trading while evaluating compliance with federal commodities law.
In August, Ondo Finance submitted comment letters to both the SEC and CFTC advocating for bringing perpetual futures tied to individual stocks under the current U.S. security futures regulatory framework rather than creating new rules.
Ongoing Jurisdictional Disputes Impacting Kalshi
Alongside its push into oil derivatives, Kalshi is involved in jurisdictional disputes regarding whether federal commodities laws preempt state gambling enforcement related to event contracts traded on CFTC-regulated exchanges.
A Michigan court issued a preliminary injunction preventing Kalshi from offering sports-related event contracts in the state and mandated geofencing to block Michigan residents.
Separately, New Jersey petitioned the U.S. Supreme Court to resolve contradictory rulings from federal appeals courts concerning jurisdictional authority in cases involving New Jersey and Nevada.
Why it matters
Kalshi’s application for approval of perpetual WTI crude futures on a regulated U.S. exchange marks a significant innovation in derivatives markets, offering traders a novel instrument that supports continuous 24/5 trading and eliminates the need to roll contracts. This development aligns with broader industry moves toward greater flexibility and accessibility in trading products, potentially encouraging further regulatory evolution in the oil space. Meanwhile, the jurisdictional disputes involving Kalshi highlight the complex legal landscape governing event contracts in the U.S. and underscore the need for clearer rules to integrate such innovations within the existing regulatory framework.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
Open original source ↗