Prediction market Kalshi has withdrawn its filing with the US Commodity Futures Trading Commission (CFTC) to launch perpetual futures contracts for the PEPE meme coin. The platform had filed the KPEPEPERP contract on the same day it filed for Uniswap perpetual futures, which was approved.
The withdrawal of the PEPE meme coin futures filing by Kalshi indicates potential regulatory hurdles or strategic reconsiderations for crypto derivatives on prediction markets, even as other crypto and traditional index futures are being approved.
Prediction market Kalshi has withdrawn its filing with the US Commodity Futures Trading Commission (CFTC) to launch perpetual futures contracts for the PEPE meme coin. The platform had filed the KPEPEPERP contract, a cash-settled perpetual with no fixed expiration, on the same day it filed for Uniswap perpetual futures, which was approved and listed.
Kalshi had intended to use CF Benchmarks as the underlying price index for the KPEPEPERP contract, with trading hours, funding, and settlement pricing similar to its existing kSHIB perp futures. The platform framed the product as a hedge for PEPE holders, including liquidity providers, market makers, and OTC desks.
However, Kalshi withdrew the filing on October 1 for undisclosed reasons. This comes after the CFTC approved S&P 500 stock index perp futures for Kalshi, expanding its offerings beyond crypto and metal futures and putting it in direct competition with traditional derivatives exchanges.
In the past 24 hours, the PEPE coin price has dropped more than 3% to $0.00000435, with trading volume also down over 20%. Despite the recent drop, the meme coin has rallied more than 20% in the past month.
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