Kalshi Aims to Bring Crypto Trading Model to US Stocks with Perpetual Futures Contracts

Kalshi, a prediction platform, is preparing to seek regulatory approval for approximately 60 perpetual futures contracts tied to US stocks such as Tesla (no mention of specific tickers), Apple, and Nvidia. This move could bring the 24/7 trading model commonly used in cryptocurrency markets to US stocks. According to a report by The Wall Street Journal, Kalshi plans to apply for products tracking these companies, as well as certain exchange-traded funds (ETFs).

If approved, these products would be the first regulated single-stock perpetual futures contracts offered in the US. These contracts are intended to trade at night and on weekends when the Nasdaq is closed, allowing market expectations regarding a company's value to be priced in before the underlying stock resumes trading.

The biggest question facing Kalshi's plan is whether these products will be regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). Although the contracts are futures in nature, the underlying assets will be US stocks under SEC oversight.