Sources familiar with the matter indicate that prediction market platform Kalshi is preparing to request regulatory clearance to launch the first regulated single-stock perpetual futures in the United States, with underlying assets including Tesla, Apple, and Nvidia. These products, known as perps, enable traders to execute positions around the clock and utilize leverage, thereby amplifying both potential gains and losses; the absence of an expiration date further escalates the risk profile.

Earlier this year, a surge in trading activity for oil-linked perpetual contracts on the decentralized crypto exchange Hyperliquid, following the outbreak of Middle East conflicts, drew attention to this type of speculative betting. The platform, registered in Singapore, is technically barred from serving U.S. residents, yet users circumvent its geo-fencing restrictions to participate.

The introduction of single-stock perpetuals is part of a broader competition among a new generation of emerging platforms on Wall Street, as firms race to offer investors a diverse array of novel trading instruments, some of which critics argue carry elevated risk and high complexity. According to one insider, Kalshi plans to list approximately 60 perpetual contracts tied to popular exchange-traded funds and publicly traded companies with market capitalizations of at least $100 billion.

"I believe this product could generate substantial losses, particularly for retail investors," stated Schiffrin. "The 24/7 trading feature means investors can place bets at any time. Moreover, leverage levels for perpetual futures commonly far exceed those of single-stock ETFs."

Udesh Jha, Chief Risk Officer at Kalshi, contends that funding rates help mitigate the risk of downward spirals for traders, and the lack of an expiration date does not necessarily lead to mounting leveraged positions. Jha noted that the product is fundamentally equivalent to security futures, albeit with lower costs, and that leverage levels on Kalshi's perpetuals align with those of other traditional derivatives exchanges in the U.S.

Data from Blockworks Research shows that on the Hyperliquid platform, total trading volume for single-stock perpetual futures, including leveraged components, skyrocketed from $4 billion at the start of the year to $212 billion. Since single-stock futures are legally classified as security futures, entities like Kalshi seeking to launch such products must obtain dual approval from both the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC).

The rollout of perpetual contracts in the U.S. market has already sparked legal disputes. CME Group Inc filed a lawsuit against U.S. regulators in June, targeting Kalshi's perpetual operations in the country. CME alleged that regulators classifying Kalshi's perpetuals as futures rather than swaps violates U.S. law. In response, Kalshi, Coinbase, and the CFTC have argued that the lawsuit represents an attempt to stifle market competition. The CFTC recently moved to have the case dismissed.

Kris Marszalek, CEO of Crypto.com, observed that single-stock perpetual futures are already exerting an impact on the U.S. market, yet current trading occurs on offshore, unregulated venues. "It would be reasonable for both regulatory agencies to coordinate and permit these products to trade within the country, in a more controlled environment, to protect consumers," he stated in a recent interview.