Kalshi files to offer US stock perpetual futures, joining Coinbase's push
Prediction market platform Kalshi has filed regulatory proposals with the SEC and CFTC to introduce perpetual futures linked to single U.S. stocks, joining Coinbase in efforts to bring crypto-style derivatives into traditional equity trading. These contracts feature no expiration date and employ periodic funding payments to maintain alignment with the underlying stocks' prices.
Kalshi's filing for US stock perpetual futures
On Friday, Kalshi submitted a proposed rule change to both the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) seeking approval to offer perpetual futures contracts linked to individual US stocks. These contracts would have no preset expiration date and use periodic funding payments between long and short positions to maintain price parity with the underlying stocks.
Regulatory treatment and clearing
Kalshi intends to classify these contracts as security futures products, clearing them through its CFTC-registered clearinghouse, Kalshi Klear. The CFTC has not yet approved the proposal.
Competition intensifies among perpetual futures providers
Coinbase filed a similar proposal on the same day to offer perpetual futures on US stocks, showing a growing interest in bringing popular crypto derivative structures into traditional equity markets. Additionally, Payward, the parent company of crypto exchange Kraken, filed via its Bitnomial Exchange to offer perpetual futures tied to 10 US equities including Tesla, Nvidia, Apple, Microsoft, and Amazon, with plans for 24/5 trading availability.
Background and regulatory context
Kalshi already offers cryptocurrency perpetual futures in the US on Bitcoin, Ether, Solana, and XRP after securing CFTC approval for its Bitcoin perpetual futures contract in May. The momentum to introduce single-stock perpetual futures follows the September 15 failure of the CLARITY Act in the Senate, which did not reach the required 60 votes. SEC Chair Paul Atkins stated post-vote that the commission would act decisively using its existing statutory authority to provide regulatory certainty for American investors and entrepreneurs.
Why it matters
The news highlights a key development in bridging crypto derivatives with traditional US equity markets. While perpetual futures on cryptocurrencies like Bitcoin have gained regulatory approval and market presence, the filings by Kalshi, Coinbase, and Payward to introduce perpetual futures on individual stocks represent a novel expansion of these crypto-style instruments into mainstream finance. This could enhance liquidity and hedging options for equity market participants but also calls for careful regulatory scrutiny and investor awareness about these innovative products. CFTC approvals or denials will significantly shape the evolving derivatives landscape in the US financial system.
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