The Commodity Futures Trading Commission (CFTC) announced on Tuesday that it has cleared equity perpetual futures for trading on U.S. regulated exchanges, ending the need for American investors to seek similar products offshore. The approval applies to a suite of contracts filed by Kalshi, a regulated exchange that will initially list 58 contracts covering 55 individual stocks—including Apple, Tesla, Nvidia and Microsoft—as well as two index‑linked funds tracking the S&P 500 and Nasdaq‑100.

How Equity Perpetual Futures Differ From Traditional Futures

Unlike standard futures, which settle on a fixed expiration date, perpetual futures have no set expiry and can be held indefinitely as long as margin requirements are met. A recurring funding payment, calculated each hour, keeps the contract price aligned with the underlying share price. According to the filing submitted by Coinbase Derivatives, the funding rate can reach up to 0.10% per hour when the contract trades above the spot price.

Leverage, Margin and Risk Controls

Kalshi’s design requires traders to post roughly 15.5% of a contract’s notional value, translating to about 6‑10x leverage depending on the specific product. A Washington‑based reform group warned that the contracts include automatic liquidation mechanisms that trigger during steep price declines, a feature it likened to a “gambling tool masquerading as a legitimate financial instrument.” Better Markets noted that offshore equivalents can offer up to 20x leverage, while SEC‑approved single‑stock ETFs are typically capped at 2x.

Regulatory Rationale and Industry Reaction

CFTC Chairman Michael Selig classified the contracts as security futures, placing them under joint SEC oversight and allowing only exchanges that are also SEC‑registered to list them. The approval follows the CFTC’s May decision to permit a Bitcoin perpetual contract on Kalshi, a move the agency described as protecting U.S. investors from unregulated offshore venues. However, incumbents such as CME Group have already filed lawsuits challenging the CFTC’s recent crypto‑related approvals, and other market players, including Intercontinental Exchange, are preparing to launch competing 24/7 futures products.

What to Watch Next

Early trading volumes will reveal whether domestic demand can shift activity away from offshore platforms. Regulators are expected to monitor liquidation events and funding rate volatility closely, and any further legal challenges from established futures exchanges could shape the rollout timeline for additional equity perpetual contracts.