Kalshi is preparing to seek U.S. approval for about 60 perpetual futures tied to individual stocks and exchange-traded funds, potentially bringing a crypto-style trading product into traditional equity markets.
The planned contracts could include Tesla, Apple and Nvidia, with trading available around the clock. If regulators approve the products, they would represent the first regulated perpetual futures linked to individual U.S. stocks.
Perpetual futures, commonly known as perps, do not have expiration dates. Traders can take long or short positions, often with leverage, while periodic funding payments help keep the contracts aligned with the underlying asset’s price. The products have become a major part of crypto markets since BitMEX introduced them in 2016, while platforms such as Hyperliquid now offer leveraged trading on bitcoin and hundreds of other tokens 24/7.
A Tesla perpetual contract, for example, could continue trading overnight and during weekends when the Nasdaq is closed. That could give investors a continuous market-based indication of sentiment and potential stock valuations before regular trading resumes.
However, the proposal raises a major regulatory question over whether these products should fall under the Commodity Futures Trading Commission or the Securities and Exchange Commission. Kalshi received CFTC approval in May for a bitcoin perpetual contract classified as a futures product, although the agency noted that similar structures involving other asset classes would require individual review.
Citadel Securities has pushed back against moving stock-linked perpetuals outside SEC oversight. In a letter to the SEC and CFTC on Thursday, the firm argued that contracts tied to U.S. public companies should remain under securities-market supervision.
Citadel warned that allowing such products to operate under a different regulatory framework could create a “parallel shadow market” separated from the surveillance systems used across U.S. stocks and options.
The firm also highlighted potential market-integrity risks. An employee with confidential earnings information, for instance, could potentially trade a stock perpetual while the underlying market is closed. Similarly, a company could release major news during a trading halt while its perpetual contract continues moving.
Citadel said keeping related products within the SEC’s framework helps regulators identify insider trading and attempts to influence one market through activity in another. Rules governing trading halts, order handling and market access may also not automatically apply if the contracts are regulated elsewhere.
The broader debate centers on whether a 24/7, crypto-style trading structure can be integrated into traditional stock markets that operate on fixed schedules.
