Kalshi has asked the Commodity Futures Trading Commission to approve a new kind of contract for stocks and copper. The filing borrows a structure long associated with cryptocurrency exchanges: perpetual futures.
Perpetual futures, or perps, differ from traditional futures contracts in one key way. They carry no expiration date. Traders can hold positions indefinitely, paying or receiving periodic funding fees that keep the contract price tethered to the underlying asset. Crypto exchanges such as Binance and Bybit built enormous trading volumes around this model over the past several years.
Kalshi is known primarily as a regulated exchange for event contracts, sometimes called prediction markets. Those products let users trade on the outcome of elections, economic data releases, and other real-world events. The company has expanded aggressively in recent years, pushing into new asset categories and testing the boundaries of what falls under CFTC oversight.
Bringing perpetual futures to equities and copper would mark a departure from Kalshi's original focus. It would also test whether a trading mechanism designed for a largely unregulated, always-open crypto market can function within the more tightly supervised framework governing U.S. derivatives on stocks and commodities.
Details about which stocks or how the copper contract would be structured were not specified in the reports. Reports from BeInCrypto and Cryptopolitan describe the filing as an attempt to formally extend the perpetual futures model beyond digital assets into traditional finance.
The CFTC has not yet indicated a timeline for reviewing the application. Approval of derivatives products with novel structures typically involves scrutiny of margin requirements, funding-rate mechanics, and investor protection safeguards. Regulators have historically taken a cautious approach toward products that trade continuously without the circuit breakers common to standard futures markets.
The filing arrives as U.S. regulators continue to grapple with how crypto-native financial products should interact with legacy markets. Perpetual futures have generated substantial trading activity in digital assets, but they have also drawn criticism for enabling high leverage and rapid liquidations. Applying the same mechanics to equities, which are subject to different disclosure and market-manipulation rules, raises additional questions for regulators to weigh.
Kalshi's push also reflects a broader trend of trading platforms seeking to blur the lines between distinct asset classes. Exchanges built around crypto trading infrastructure have increasingly sought to offer traditional financial instruments, and vice versa. A successful approval could encourage other exchanges to pursue similar filings for equities, commodities, or other regulated asset categories.
Market Impact
If approved, the filing could reshape how retail and institutional traders access exposure to individual stocks and copper. Perpetual futures typically offer higher leverage and continuous trading hours compared with standard exchange-listed options or futures, which could attract volume away from existing venues.
The filing may also prompt other exchanges, both crypto-native and traditional, to explore similar products once regulatory precedent is set. Market participants will likely watch closely for signals from the CFTC on funding-rate rules, margin standards, and any restrictions on retail access, since these details will determine how closely the new contracts mirror their crypto counterparts.
The filing signals growing appetite to merge crypto trading mechanics with traditional markets, though its fate now rests with CFTC review.
Frequently Asked Questions
What are perpetual futures?
Perpetual futures are derivative contracts with no expiration date. Traders hold positions indefinitely while paying or receiving periodic funding payments that keep the contract price aligned with the underlying asset.
What did Kalshi file with the CFTC?
According to reports, Kalshi filed a request seeking approval to offer perpetual futures contracts on stocks and copper, applying a structure common on crypto exchanges to traditional assets.
Has the CFTC approved the filing?
No timeline for approval has been reported. The CFTC still needs to review the application before any such contracts could be offered.
Why does this matter for traditional markets?
Approval could introduce a new trading format, offering continuous, leverage-based exposure to stocks and copper that differs from existing exchange-listed derivatives.