Dogecoin Goes Mainstream as Kalshi Launches Regulated Perpetual Contracts

Dogecoin has made further inroads into the US market as Kalshi launches fully regulated onshore perpetual contracts. This move allows retail investors to trade in a CFTC-regulated jurisdiction, giving them access to legal 'perpetual' contracts on the meme token.

The new contracts, which are available in fractional formats with a minimum of 10 DOGE per contract, have strict leverage limits. Long positions can be leveraged up to 3.8x, while short positions are limited to 2.8x. This is in contrast to the aggressive leverage offered by offshore exchanges.

The trading volume for the first hours has been significant, with daily volumes of around $952,100 and open interest of $553,300. Positions are skewed towards bears, with a 54% share of bearish positions compared to 46% bullish.

The main economic benefit of onshore perpetuals for Americans is tax treatment under Section 1256 of the U.S. Internal Revenue Code. This rule applies the 60/40 rule to profits, where 60% of income is taxed at the lower long-term capital gains rate and 40% is taxed at the short-term rate.