Kalshi has filed with the CFTC to launch perpetual futures tied to a major US stock index and copper, expanding beyond Bitcoin and raising new questions about regulatory oversight and competition in US derivatives markets
Kalshi, a US-based prediction market platform, has submitted applications to the Commodity Futures Trading Commission (CFTC) to list perpetual futures contracts linked to both a broad US equity index and the spot price of copper. This move signals Kalshi's intent to expand its regulated derivatives offerings beyond cryptocurrency, following its earlier approval to list perpetual Bitcoin contracts in May 2026.
New Contracts Target Equities and Commodities
The first proposed contract, called the "US500 Contract," would track the MerQube US Large Cap Index, which measures the performance of the 500 largest publicly listed and headquartered US companies. The second, "COPPERPERP," would be a perpetual futures contract referencing the spot price of copper, using the Pyth Network XCU-USD price feed and denominated in US dollars per pound. Perpetual futures are derivatives that allow traders to speculate on price movements without an expiration date, a structure that has been popular on offshore crypto exchanges but only recently received US regulatory clearance.
Regulatory Scrutiny and Legal Pushback
Kalshi's expansion into equity and commodity-linked perpetuals comes after the CFTC's landmark decision in May 2026 to approve perpetual Bitcoin contracts for both Kalshi and Coinbase. That approval marked the first time perpetual futures were authorized for trading in the US, a move that has since drawn legal challenges. In June 2026, CME Group, a major US derivatives exchange, filed a lawsuit against the CFTC, alleging that the agency's approval process for perpetual futures violated the Commodity Exchange Act and could harm CME's existing derivatives business by introducing direct competition.
Market Impact and Uncertainty
The outcome of CME's legal challenge could influence the timeline and viability of Kalshi's new applications. As of publication, the CFTC had not indicated when it would review the filings or whether the ongoing litigation might delay or block approval. Kalshi did not respond to requests for comment from The Block. If approved, these contracts would broaden the range of regulated perpetual futures available to US traders, potentially increasing competition and liquidity in both equity and commodity derivatives markets.
According to CFTC records, the agency approved Kalshi's perpetual Bitcoin contract in late May 2026, making it the first such product to receive US regulatory authorization. The MerQube US Large Cap Index, which underpins the proposed US500 Contract, is designed to represent the largest 500 US-listed companies by market capitalization. Copper spot prices, referenced in the COPPERPERP contract, are widely used as a benchmark for industrial metals trading and are tracked by multiple data providers, including the Pyth Network.
Perpetual futures differ from traditional futures by having no set expiration date, allowing positions to be held indefinitely as long as margin requirements are met. This structure introduces unique risks, including funding rate volatility and the potential for rapid liquidations during periods of high market stress. In the US, regulatory approval for such products has historically been limited due to concerns about investor protection, market integrity, and systemic risk. The CFTC's recent willingness to consider these contracts reflects shifting attitudes toward crypto-native market structures, but the outcome of ongoing legal and regulatory debates will shape the future availability of perpetuals tied to equities and commodities.
