Prediction market operator Kalshi is reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) for a West Texas Intermediate (WTI) crude oil perpetual futures contract. According to sources familiar with the matter, the filing could be submitted to the CFTC as soon as next week.
If approved, the contract would be the first oil-linked perpetual futures product to trade on a regulated US platform. The contract would operate 24 hours a day, five days a week.
What Are Perpetual Futures?
Perpetual futures, commonly referred to as "perps," are derivative contracts without expiration dates. This structure allows traders to maintain positions indefinitely without the need to roll them into new contracts.
Regulatory Context
The CFTC has been actively considering expanded derivatives products. In June, the regulator solicited public comments on extending standard futures contracts to 24/7 trading and permitting perpetual contracts tied to physically delivered or storable energy commodities, including crude oil.
In July, the CFTC halted a CME Group contract that would have introduced 24/7 crude oil futures trading while examining whether the product complied with federal commodities law.
Additionally, in August, Ondo Finance submitted comment letters to both the SEC and CFTC advocating for the introduction of perpetual futures tied to individual stocks on US platforms, arguing such products could operate under existing securities futures frameworks.
Other Developments for Kalshi
Kalshi's expansion into oil derivatives occurs amid ongoing regulatory disputes concerning its prediction market business. A Michigan state court issued a preliminary injunction on Tuesday prohibiting Kalshi from offering sports-related event contracts in the state and requiring geofencing to block Michigan residents from accessing such products.
New Jersey has asked the US Supreme Court to resolve a jurisdictional dispute regarding whether federal commodities law preempts state gambling enforcement for event contracts traded on CFTC-regulated exchanges, following conflicting decisions from federal appeals courts.
