Kalshi launches the first regulated crypto perpetual futures in the US with no expiry, leverage, and CFTC oversight.
The world of derivatives trading has operated largely outside the reach of American investors for years. Offshore markets have dominated perpetual futures trading, processing over $90 trillion in annual volume as of 2025. This asset class has grown faster than almost any other in recent history, yet US institutions and retail traders have been effectively locked out.
Kalshi has introduced a new product that changes this dynamic entirely. The company announced the launch of perpetual futures contracts on May 29, 2026, making Kalshi the first company in American history to offer perpetuals on a regulated domestic exchange. The Commodity Futures Trading Commission approved KalshiEX's BTCPERP contract, a perpetual futures contract that references the spot price of bitcoin, determining it complies with the Commodity Exchange Act and applicable CFTC regulations.
Kalshi has evolved from a prediction market leader to a next-generation derivatives exchange. The platform offers US investors access to crypto perpetual futures without the need to navigate opaque offshore venues. This represents a fundamental shift in how American traders can access one of the fastest-growing asset classes in the world.
What Are Perpetual Futures Contracts
Perpetual futures, commonly called perps, are derivatives that lack a traditional expiration date. Unlike standard futures contracts that settle on a specific date, perpetuals allow traders to maintain positions indefinitely without the need to roll over contracts. This structure makes them more appealing for traders who are unlikely to ask for delivery of the underlying asset.
Instead of tracking prices pegged to a specific date, perpetuals simply track whether the price of an asset goes up or down. The contract structure is designed to continuously track the underlying asset price through funding payments that help keep the perp price aligned with the broader market. Funding rates are charged every eight hours and are visible in transaction history.
Perpetuals also permit high degrees of leverage, often as much as 50 to 1, enabling investors to amplify their exposure to market moves. This leverage allows traders to control larger positions with smaller capital outlays. However, the same leverage that magnifies gains can also magnify losses, creating significant risk for inexperienced traders.
Use Cases for Perpetual Futures
Kalshi has described a range of use cases for perpetual futures, spanning both hedging and directional trading. A crypto payments company or fund manager with bitcoin exposure could use a regulated perpetual to hedge price risk without repeatedly managing expirations. If a firm expects to receive bitcoin next week, it could short a BTC perpetual to offset the risk of a price decline before the payment is converted or recorded.
A more speculative trader could use the same product to take a bullish or bearish position without selecting an expiration date. Perps have also become popular among oil traders who use the instrument to trade commodities on weekends or to bet on pre-IPO companies. The ability to hold positions indefinitely and trade 24/7 has made perpetuals attractive across multiple asset classes.
Offshore Market Context
Perpetual futures have exploded in popularity globally, particularly in the crypto sector. Offshore perpetuals grew from $28 trillion in annual volume in 2023 to over $90 trillion in 2025. Perpetual futures trading volume reached $61.7 trillion in 2025, up 29 percent on 2024, according to data from CryptoQuant.
The instrument has been closely associated with Hyperliquid, a blockchain-based perps exchange that has seen its market capitalization roughly double in the past three months. Yet despite this massive global market, US investors have had almost no way to participate through regulated channels. Offshore platforms processed trillions in volume while American institutions and retail traders remained sidelined.
The regulatory shift changes this dynamic. By housing these contracts within a CFTC-regulated framework, Kalshi and Coinbase aim to offer a secure alternative for institutional and retail investors previously forced to navigate opaque or offshore venues for access. The move transitions perpetual futures from a regulatory gray area into the oversight of domestic exchanges.
Regulatory Approval and CFTC Oversight
The CFTC, led by Trump appointee Chairman Mike Selig, approved Kalshi's request to offer perps. Selig has been an advocate for bringing perps onshore since being confirmed as CFTC chairman in December 2025. The CFTC issued an order approving KalshiEX's BTCPERP contract, determining it complies with the Commodity Exchange Act and applicable regulations.
Selig described the approval as historic, stating on X: "This morning, the @CFTC took historic action to permit the listing of a true bitcoin perpetual contract by a CFTC-registered exchange, charting a path for one of the most liquid segments of the crypto asset markets to exist within the US regulatory framework." The CFTC also issued a policy statement clarifying its oversight of such contracts, mandating a case-by-case regulatory review process for any new perpetual products referencing assets beyond current approved listings.
Because the CFTC's positions on perpetuals have been established through approvals and guidance rather than codified regulation, they remain vulnerable to reversal if agency leadership changes before Congress or the commission formalizes the rules. This structural vulnerability highlights the importance of ongoing regulatory engagement.
Coinbase Partnership and Combined Launch
Cryptocurrency exchange Coinbase and Kalshi announced the launch simultaneously, marking the first time perpetual futures have been available to US investors through domestic, regulated exchanges. The move followed CFTC listing approval for both firms, effectively transitioning perpetual futures from a regulatory gray area into the oversight of domestic exchanges.
Coinbase Financial Markets received a no-action letter from the CFTC, clearing a path for the firm to route US customers into offshore options and perpetuals through its Bermuda-based affiliate. Coinbase previously offered a perps-like product in the US, but due to regulatory uncertainty it had yet to offer true perpetuals. The combined launch of two major platforms demonstrates the scale of regulatory progress.
The entry of perps to the US market marks the first time that Kalshi, one of two major prediction markets, has given its users access to financial instruments beyond event contracts. Kalshi co-founder Luana Lopes Lara noted the long journey, stating on X: "I started working on perps in December 2024 with some of my favorite people at Kalshi. A year and a half later, and with some more amazing people joining the company and helping make this a reality, we're finally launching the first perpetual futures product in the US."
Early Trading Performance
The launch of perpetual futures on Kalshi has been an early success. In the first 24 hours, trading volume on Kalshi hit $100 million. In the first week, total trading volume rocketed past $1 billion. This represents a strong start for a product that had been entirely inaccessible to US investors through regulated channels.
The early success comes as the crypto market has been in steep decline. Market bellwether bitcoin is down more than 30 percent for the year, and more speculative altcoins are down as much as 60 percent. Traders can use perpetual futures to take short positions in a cryptocurrency, making them a useful tool during down markets. The ability to profit from price declines has made perps particularly attractive in the current market environment.
The rapid adoption suggests significant pent-up demand among US traders who previously had to access perps through offshore platforms or not at all. The $1 billion in first-week volume demonstrates that regulated perps are not just a novelty but a substantial business opportunity.
Leverage and Risk Considerations
Perpetual futures involve significant risks that traders must understand before participating. The leverage available through perpetuals can be as high as 50 to 1, meaning a small price movement can wipe out an entire position. Even a relatively minor 10 percent market move might be enough to liquidate a leveraged position. Given how volatile the crypto market has been historically, traders could be wiped out after just one bad day.
There have already been spectacular crypto liquidations. In one recent 24-hour period, nearly $1 billion was liquidated after a downward move by bitcoin caught traders by surprise. One trader lost $38 million in a single day. This level of risk requires a sophisticated understanding of leverage, margin requirements, and liquidation mechanics.
Critics warn that perpetual futures introduce significant risks for retail participants. Because leverage can magnify losses rapidly, even minor adverse price fluctuations can wipe out a position, creating a landscape that experts say requires a level of sophistication that individual investors may not always possess. Kalshi has not targeted retail traders specifically, but the product is accessible to eligible investors through the platform.
Product Expansion and Future Plans
Pending regulatory reviews, Kalshi aims to launch crypto perpetuals on more than a dozen currencies. The company has stated that perpetual futures on agricultural commodities will not be part of its product offerings. This selective approach suggests Kalshi is focusing on crypto markets where there is clear demand and regulatory clarity.
The CFTC noted that the perpetual contract design may not be suitable for all asset classes and encouraged market participants to engage with staff before submitting any perpetual contract on assets not covered by the initial order. This caution suggests that the approval process for additional products may involve extended review periods and case-by-case analysis.
Kalshi's move into perpetual futures represents a significant strategic shift. The company has evolved from a prediction market focused on event contracts such as economic releases, political events, and commodity prices to a full-service derivatives exchange. This expansion positions Kalshi to compete with established derivatives exchanges while maintaining its identity as a regulated, transparent platform.
Market Structure and Competition
The US perpetual futures market is taking shape with Kalshi and Coinbase as early entrants. The blurring of lines between traditional financial markets, crypto markets, and online prediction markets is creating new opportunities and new risks. Perpetual futures are financial derivatives regulated by the CFTC, not by the SEC, which has already stoked some controversy.
Kalshi pointed to Polymarket as also moving toward 24/7 long-short trading with its own perps offering, as firms in the category look beyond election-related and other event-based contracts. This competitive dynamic suggests that the prediction market sector is evolving toward broader financial derivatives offerings.
The regulatory framework for perpetuals remains somewhat unsettled. Because the CFTC's positions on perpetuals have been established through approvals and guidance rather than codified regulation, they remain vulnerable to reversal if agency leadership changes before Congress or the commission formalizes the rules. This vulnerability creates uncertainty for both exchanges and traders.
Conclusion
Kalshi's launch of perpetual futures represents a watershed moment for US derivatives trading. The CFTC-approved product brings a $90 trillion global asset class onshore for the first time, offering American investors regulated access to leverage trading without expiration dates. The early trading volume exceeding $1 billion in the first week demonstrates substantial pent-up demand.
For traders exploring Kalshi perpetual futures leverage trading strategies, the platform offers a straightforward approach to directional trading without options complexity. The product provides a way to profit from both rising and falling markets, with funding rates charged every eight hours and transparent fee structures available on the platform. The no-expiry design eliminates the need for contract rollover, simplifying position management.
The combination of CFTC regulation, transparent pricing, and the absence of expiry makes Kalshi's perps a significant addition to the US financial landscape. However, traders must approach the product with an understanding of the leverage risks involved. As the regulatory framework evolves and more products become available, perpetual futures are likely to become an increasingly important tool for American investors.
Frequently Asked Questions
1. What are perpetual futures and how do they differ from traditional futures?
Perpetual futures, or perps, are derivatives that lack a traditional expiration date, allowing traders to maintain positions indefinitely without the need to roll over contracts. Unlike traditional futures that settle on a specific date, perpetuals simply track whether the price of an asset goes up or down. The contract structure uses funding payments to help keep the perp price aligned with the broader market, with rates charged every eight hours. Perpetuals permit high degrees of leverage, often as much as 50 to 1, enabling investors to amplify their exposure to market moves. Kalshi's BTCPERP contract references the spot price of bitcoin and is fully regulated by the CFTC.
2. What makes Kalshi's perpetual futures different from offshore offerings?
Kalshi's perpetual futures are the first to be offered on a CFTC-regulated domestic exchange in US history. Offshore perpetuals grew from $28 trillion in annual volume in 2023 to over $90 trillion in 2025, but US investors previously had to access them through opaque offshore venues. The CFTC approved KalshiEX's BTCPERP contract, determining it complies with the Commodity Exchange Act and applicable regulations. This onshore, regulated framework provides investor protections and oversight that offshore platforms cannot match. However, CFTC's positions on perpetuals remain vulnerable to reversal if agency leadership changes before rules are formalized.
3. What was the early trading performance of Kalshi perpetual futures?
In the first 24 hours, trading volume on Kalshi hit $100 million. In the first week, total trading volume rocketed past $1 billion. The early success comes as the crypto market has been in steep decline, making short positions through perpetuals particularly attractive. The rapid adoption suggests significant pent-up demand among US traders who previously could not access perpetuals through regulated channels. The $1 billion in first-week volume demonstrates the substantial market opportunity for regulated onshore perpetuals.
4. What are the risks of trading perpetual futures on Kalshi?
Perpetual futures involve significant leverage, often as high as 50 to 1, meaning a small price movement can wipe out an entire position. Even a relatively minor 10 percent market move might be enough to liquidate a leveraged position. There have already been spectacular crypto liquidations, with nearly $1 billion liquidated in one 24-hour period after a bitcoin price move, and one trader losing $38 million in a single day. Critics warn that perpetual futures introduce significant risks for retail participants who may lack the sophistication to manage leverage effectively. Traders must understand margin requirements, liquidation mechanics, and the volatile nature of crypto markets before participating.
5. What products does Kalshi plan to offer beyond bitcoin perpetuals?
Pending regulatory reviews, Kalshi aims to launch crypto perpetuals on more than a dozen currencies. The company has stated that perpetual futures on agricultural commodities will not be part of its product offerings. The CFTC noted that the perpetual contract design may not be suitable for all asset classes and encouraged market participants to engage with staff before submitting any perpetual contract on assets not covered by the initial order. This selective approach suggests Kalshi is focusing on crypto markets where there is clear demand and regulatory clarity. The company has evolved from prediction market leader to next-generation derivatives exchange.
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