Kalshi Launches Crypto Perpetual Futures, Becomes First Federally Regulated US Perps Venue
Kalshi announced on May 29, 2026 that it will list perpetual futures contracts on its CFTC-regulated exchange, starting with crypto perps. The company claims it is the first US firm in history to offer perpetual futures under federal regulation, putting it in direct competition with offshore venues like Binance, Bybit, and OKX.
Kalshi announced on May 29, 2026 that it will list perpetual futures contracts on its CFTC-regulated Designated Contract Market, starting with crypto perpetuals. In its statement, the company described itself as the first firm in American history to offer perpetuals under federal regulation. Perpetual futures, the offshore-dominated derivative product that powers most retail crypto-trading volume on platforms like Binance, Bybit, and OKX, have until now been unavailable to US residents from a CFTC-licensed venue. The product launch reframes Kalshi from a prediction-market platform into a full-stack retail derivatives exchange.
The strategic logic is straightforward. Kalshi already has the regulatory hardest part: a federal DCM license, an active CFTC working relationship, and (since the May 5 Liburdi ruling in Arizona) a strong preemption shield against state-level enforcement. Crypto perpetuals globally trade roughly $200 billion in daily volume across offshore venues. Even modest capture of US-resident demand that currently routes through VPNs to Binance and Bybit would dwarf Kalshi's current prediction-market revenue. The CFTC for its part has wanted onshore perpetuals for years; chairman Michael Selig has publicly signaled support for regulated derivatives products that compete with offshore venues.
Mechanics matter. Perpetual futures differ from standard futures in that they have no expiration date; instead a funding rate (paid between longs and shorts every few hours) keeps the contract price anchored to spot. Kalshi has not yet disclosed the funding-rate schedule, leverage caps, or initial margin requirements, but CFTC-licensed perps will almost certainly carry lower maximum leverage than offshore venues (Binance offers up to 125x; CFTC retail products are typically capped under 20x). The lower leverage will be the friction that determines whether sophisticated traders actually migrate from offshore or simply add Kalshi to a multi-venue routing setup. Initial rollout is crypto pairs (BTC, ETH announced; others tbd), with FX, commodities, and equities perpetuals signaled as later phases.
For the broader prediction-markets industry the announcement is a tell. Kalshi is the operator that has won every legal fight it has entered since 2023: CFTC sports-contract challenge, multiple state preemption suits, the Arizona ruling. Pivoting hardware that won in event contracts toward a larger and more contested derivative category is the move you make when you believe your regulatory position is durable. Polymarket cannot easily follow because its USDC-on-Polygon settlement model is harder to reconcile with CFTC margin and clearing requirements. Robinhood, which already routes prediction-market orders through Kalshi and its own MIAXdx DCM, is the firm best positioned to compete on perps once Kalshi proves the product. The next 12 months are likely to look more like Kalshi vs Robinhood than Kalshi vs Polymarket.
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Recent updates
Utah Files Felony Charges Against Kalshi and Its Founders — Second State to Criminally Charge a Platform
Utah filed criminal charges against Kalshi and its two co-founders, Tarek Mansour and Luana Lopes Lara, on October 28 — 13 felonies and a misdemeanor, including a second-degree 'pattern of unlawful criminal activity' count and 12 counts of online gambling promotion. The charges stem from a September sting in which an undercover agent placed 12 sports wagers verified to be in Utah. The CFTC sued Utah the day before to block state enforcement, its tenth such suit. Utah is the second state after Arizona to criminally charge Kalshi, and the first to charge the founders personally. Kalshi called it a 'crazy overreach.'
NBA Names Kalshi and Polymarket Preferred Exchanges — Leaving the NFL Alone in Opposition
The NBA announced on October 26 that it has named Kalshi and Polymarket its 'preferred prediction market exchanges,' signed a non-binding memorandum of understanding with the CFTC on basketball integrity, and expanded its DraftKings deal to include prediction markets — the first league to extend a sportsbook partnership into the category. The exchange deals bar league and team personnel from trading NBA contracts, limit permissible markets, and require sharing of suspicious-trading data, in exchange for NBA intellectual property and official data. The NBA joins MLB, the NHL, and MLS as partnered leagues, leaving the NFL as the lone major holdout — and the only league fighting the platforms in court.
CFTC Chair Says Agency Is Watching Prediction Markets for Manipulation Ahead of Midterms
CFTC Chairman Michael Selig said on October 23 that the agency is closely monitoring prediction markets for manipulation ahead of the November 3 midterms, and that it is separately scrutinizing oil market trading tied to President Trump's announcements about the war in Iran. Combined midterm open interest on Kalshi and Polymarket stood at $250 million as of October 18, with Kalshi holding 84%. Selig acknowledged the agency often catches political figures attempting to trade 'oftentimes after the fact.' The remarks highlight the CFTC's dual and somewhat conflicting role as both the platforms' federal protector and their manipulation watchdog, at a time when the agency has shed enforcement staff.