Kalshi Seeks CFTC Approval for Gold and Silver Perpetual Futures Trading

Key Points

• On September 9, Kalshi submitted applications to the CFTC for GOLDPERP and SILVERPERP perpetual futures.
• The proposed contracts feature cash settlement, no expiration dates, and continuous 24/7 trading access.
• Price feeds come from Pyth Network; the contracts involve zero physical delivery of metals.
• The platform currently operates perpetual futures on 18 digital assets with more than $8.5 billion in total volume.
• CME Group has initiated legal action against the CFTC regarding the regulatory classification of Kalshi’s Bitcoin perpetual contract.

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Derivatives platform Kalshi has submitted regulatory filings with the Commodity Futures Trading Commission seeking authorization to offer perpetual futures contracts based on gold and silver prices. The applications were lodged on September 9 using CFTC Regulation 40.2(a), a self-certification mechanism that enables registered exchanges to introduce new products without awaiting a formal commission approval vote.

The proposed instruments carry the designations GOLDPERP and SILVERPERP.

Contract Specifications and Structure

GOLDPERP is designed to mirror the spot market price of one troy ounce of gold denominated in U.S. dollars. SILVERPERP follows an identical model for silver pricing. Both instruments utilize cash settlement protocols, eliminating any physical delivery of precious metals to traders.

Rather than terminating on predetermined expiration dates, these contracts remain active perpetually. A funding rate mechanism maintains alignment between contract prices and underlying spot markets. Depending on prevailing market dynamics, participants with long exposure may compensate short position holders, or vice versa.

This perpetual design eliminates the necessity for contract rollovers when positions transition between expiry cycles. According to Kalshi, this approach could reduce transaction costs for market participants including hedgers, bullion merchants, metal refiners, and entities with sustained precious metals exposure.

Pyth Network serves as the designated price oracle for both contracts. Pyth consolidates pricing information from multiple sources including market makers, trading venues, and financial service providers.

Availability and Trading Schedule

Kalshi has proposed continuous trading availability for both contracts, operating around the clock throughout all seven days of the week, including weekends and recognized holidays. This represents an expansion from preliminary discussions in July that contemplated a 24/5 trading window.

For market participants based in the United States, this schedule provides precious metals price exposure during periods when conventional futures exchanges remain closed.

Kalshi highlighted that silver markets have experienced persistent annual supply shortfalls beginning in 2021, with projections indicating continued tightness extending through late 2025 and into early 2026. The company emphasized that SILVERPERP’s cash-settlement structure prevents any impact on physical delivery pressures affecting underlying commodity markets.

Platform Growth and Regulatory Landscape

The precious metals contracts represent the latest step in Kalshi’s aggressive product expansion across digital asset perpetuals. The platform secured CFTC authorization for its Bitcoin perpetual contract in May, establishing the first U.S.-regulated instrument of its kind. Subsequently, the company launched 17 additional cryptocurrency perpetuals spanning assets including Ether, XRP, Solana, and Hyperliquid.

On September 4, Kalshi introduced five additional crypto perpetual contracts tracking BNB, Cardano, Worldcoin, Aave, and Venice Token. Through June, the exchange reported cumulative trading activity exceeding $8.5 billion across its perpetual futures offerings.

In June, CME Group initiated litigation against the CFTC, contending that Kalshi’s Bitcoin perpetual warrants classification as a swap instrument rather than a futures contract. The CFTC has filed a motion to dismiss, asserting that CME failed to demonstrate tangible competitive harm. Judicial resolution remains pending.

Kalshi’s proposed gold and silver perpetual contracts represent distinct offerings from the platform’s existing suite of short-duration event-based contracts referencing the same precious metals.

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Source: https://blockonomi.com/kalshi-seeks-cftc-approval-for-gold-and-silver-perpetual-futures-trading/