Prediction market operator Kalshi is reportedly seeking regulatory approval from the CFTC for a perpetual futures contract tied to West Texas Intermediate (WTI) crude oil. If approved, it would be the first such product on a regulated U.S. platform, allowing indefinite position holding.
The introduction of perpetual futures for WTI crude oil on a regulated U.S. platform could offer traders new tools for long-term price exposure and hedging, potentially impacting market liquidity and trading strategies for energy commodities.
Prediction market operator Kalshi is reportedly preparing to seek regulatory approval from the Commodity Futures Trading Commission (CFTC) for a perpetual futures contract based on West Texas Intermediate (WTI) crude oil. This contract, which would not have an expiration date, could be filed as early as next week, according to a person familiar with the matter who spoke to Bloomberg.
If approved, this would mark the first time an oil-linked perpetual futures product is available for trading on a regulated U.S. platform. Perpetual futures, often referred to as 'perps,' are derivatives that allow traders to hold positions indefinitely without needing to roll them over into new contracts. Reuters reported that the contract would trade 24 hours a day, five days a week.
The CFTC has been exploring the expansion of futures trading, having sought public comments in June on extending standard futures contracts to 24/7 trading and permitting perpetual contracts for physically delivered or storable energy commodities like crude oil. In July, the regulator paused a CME Group contract that aimed to introduce 24/7 crude oil futures trading while it investigated its compliance with federal commodities law.
Separately, Ondo Finance submitted comment letters to the SEC and CFTC in July, advocating for the onshore trading of perpetual futures tied to individual stocks, arguing they could operate under existing security futures frameworks. Kalshi's move into oil derivatives occurs as its prediction market business faces a jurisdictional challenge concerning whether federal commodities law supersedes state gambling enforcement for event contracts traded on CFTC-regulated exchanges. A Michigan court recently issued an injunction against Kalshi for sports-related contracts, and New Jersey has asked the U.S. Supreme Court to resolve conflicting federal appeals court decisions on the matter.