Kalshi perpetual futures move toward 24/7 stock perps

Kalshi perpetual futures aim to bring continuous trading to equities such as Tesla and Nvidia. The firm plans to file a request for about 60 regulated contracts, covering single stocks and ETFs. If approved, these contracts would be the first U.S.-regulated equity-linked perps, allowing traders to hold leveraged positions around the clock.

How a stock perp works

Perpetual futures, often called "perps," let traders take long or short exposure without a set expiry. Instead of a settlement date, participants exchange periodic funding payments that pull the contract price toward the spot price of the underlying asset. Crypto platforms like BitMEX and Hyperliquid already rely on this model; Kalshi intends to transplant it onto traditional equities.

Regulatory tug-of-war: CFTC vs SEC

The core dispute centers on which agency should police equity-linked perps. The Commodity Futures Trading Commission classified Kalshi's Bitcoin perp as a futures contract in May, but warned that other asset classes require case-by-case review. Citadel Securities, in a letter to both regulators, argued that moving equity-based contracts out of SEC oversight would create a parallel market lacking the surveillance tools that protect against insider trading and market manipulation. The firm highlighted scenarios where an employee could trade a Nvidia perp on after-hours news that would not be reflected in the halted stock market, potentially undermining market integrity.

Market impact if approved

Should either the SEC or CFTC green-light the contracts, market participants would gain a new venue for continuous exposure to blue-chip equities. Leveraged traders could hedge or speculate around earnings releases, product launches, or macro events without waiting for the next trading session. However, the perpetual nature also raises margin-risk concerns; rapid price swings could trigger liquidations while the underlying stock remains frozen, amplifying systemic risk.

Operational considerations for traders

Kalshi already runs a regulated prediction-market platform, meaning its compliance infrastructure is in place for KYC, AML and reporting. Traders will need to manage funding-rate payments, which can swing from positive to negative depending on market sentiment. Because perps never expire, positions can be rolled indefinitely, but financing costs can erode returns if the contract stays out-of-the-money for extended periods.

Potential for regulatory precedent

The outcome of Kalshi perpetual futures could set a benchmark for other firms eyeing equity-linked perps. A favorable ruling for the CFTC would broaden the agency's reach into traditional securities, while an SEC-centric decision would reinforce the current securities-focused oversight model. Either path will likely prompt additional guidance on how trading halts, order-book transparency, and insider-information rules apply to perpetual contracts.

Risks for investors and issuers

Insiders could exploit the 24/7 market to trade on material non-public information before a formal stock halt is imposed. Companies might face pressure to coordinate announcements with both the equity market and the perpetual-future market, adding operational complexity. Market makers will need robust risk models to price funding rates accurately, especially during volatile news cycles.

What to watch next

Regulators have not set a decision timeline, but both agencies typically require a public comment period of 30-60 days for new product approvals. Watch for joint statements from the SEC and CFTC, as a coordinated approach could mitigate shadow-market risk. Monitor how crypto-derivative platforms respond; Hyperliquid and OKX have already hinted at expanding their perpetual offerings into traditional assets. Additionally, track any amendments to margin-requirement rules that could affect leveraged exposure.

Broader industry context

Kalshi's move follows a wave of crypto-centric firms seeking to bridge digital-asset trading and legacy markets. Earlier this year, tokenized equities on Binance's bStocks platform attracted over $118 million in two months, underscoring investor appetite for hybrid products. The convergence of crypto derivatives and traditional equities is also reflected in the growing prominence of market cap rankings, which now list several crypto-linked assets alongside conventional stocks in the market cap rankings.

Source and further reading

For the original filing details see the Kalshi filing details.

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