Key Points
- Prediction market operator Kalshi is pursuing U.S. regulatory clearance for approximately 60 perpetual futures contracts linked to individual stocks and ETFs, featuring Tesla, Apple, and Nvidia
- Perpetual futures are leveraged instruments without expiration dates that allow continuous trading, including during periods when traditional equity markets are closed
- While the CFTC greenlit Kalshi’s Bitcoin perpetual contract in May, individual stock perpetuals require dual approval from both the SEC and CFTC
- Market maker Citadel Securities cautioned regulators that these instruments risk establishing a “parallel shadow market” beyond conventional stock market surveillance
- Trading volume in leveraged single-stock perpetuals on Hyperliquid exploded from $4 billion to $212 billion since early 2026
Kalshi, a prominent prediction market operator, is attempting to introduce one of the cryptocurrency sector’s most widely-used trading instruments to American equity markets. The firm intends to pursue regulatory authorization for approximately 60 perpetual futures contracts connected to leading stocks and exchange-traded funds.
The planned contracts, commonly referred to as “perps,” would encompass major corporations such as Tesla, Apple, and Nvidia. According to Kalshi, the platform will restrict individual equity products to corporations with market capitalizations of at least $100 billion.
Perpetual futures enable market participants to speculate on asset price movements, frequently utilizing leverage. Distinguished from conventional futures contracts, perpetuals have no settlement date. Market participants exchange periodic funding payments to maintain alignment between the contract price and the underlying asset’s spot price.
These instruments would operate continuously, 24 hours daily throughout the entire week. This structure would allow a Tesla perpetual to continue trading during evenings and weekends while the Nasdaq remains closed.
Kalshi has already established a presence in regulated cryptocurrency perpetuals. The Commodity Futures Trading Commission granted approval for its Bitcoin perpetual contract in May. This week, Kalshi also introduced round-the-clock gold and silver perpetual contracts offering leverage up to 15x.
Regulatory Jurisdiction Dispute Emerges
Individual stock perpetuals confront more stringent regulatory hurdles compared to cryptocurrency-based products. According to existing regulations, futures contracts on single securities fall under joint jurisdiction of both the SEC and the CFTC. This framework means Kalshi must secure authorization from both regulatory bodies before offering these products.
Citadel Securities submitted a letter Thursday to both agencies, arguing that equity-linked perpetuals should remain within SEC regulatory authority. The trading firm expressed concern that transferring oversight elsewhere might establish a “parallel shadow market” isolated from the monitoring infrastructure deployed throughout U.S. equity and options markets.
The apprehension centers on the possibility that individuals possessing material non-public information could execute trades in a stock perpetual during off-market hours, when equity exchanges are shuttered and regulatory visibility diminishes.
Consumer Protection Advocates Express Concerns
Skeptics have additionally highlighted potential losses. Better Markets securities policy director Benjamin Schiffrin warned of “the potential for huge losses, especially amongst individual investors,” given that market participants can establish leveraged positions at any time.
Kalshi maintains that its leverage offerings mirror traditional futures markets and remain below levels available on many offshore exchanges. CEO Tarek Mansour has characterized perpetuals as “the purest form of trading.”
The jurisdictional dispute has already moved into litigation. CME Group filed suit against the CFTC in June challenging its authorization of Kalshi’s cryptocurrency perpetuals, contending they should be classified as swaps. The CFTC dismissed the lawsuit as “frivolous” while Kalshi suggested it demonstrated competitive anxieties.
Trading volume in leveraged single-stock perpetuals on cryptocurrency platform Hyperliquid skyrocketed from $4 billion to $212 billion since early 2026, based on data from Blockworks Research referenced by the Wall Street Journal.
Kalshi did not provide a response to requests for comment.
The post Kalshi Seeks Approval for 60 Perpetual Futures Contracts on Major Stocks Including Tesla (TSLA), Apple (AAPL), and Nvidia (NVDA) appeared first on Blockonomi.
Be the first to comment