Full Breakdown
Kalshi Seeks CFTC Approval for US Large-Cap Perpetual Futures
8/19/2026, 7:43:37 AM
Core Filing: US500 Perpetual Futures Proposal
- Who: KalshiEX LLC, a CFTC-regulated prediction-market platform.
- What: Application to list a perpetual futures contract (ticker “US500”) tracking the MerQube U.S. Large Cap Index, a float-weighted benchmark of the 500 largest U.S.-listed companies.
- When: Submitted to the CFTC on August 18.
- Where: United States, via the CFTC’s voluntary product-approval process.
- How: The contract has no expiration date; traders post margin and receive or pay periodic funding payments that keep the price aligned with the underlying index. It trades continuously from 6:00 p.m. ET Sunday through 5:00 p.m. ET Friday, with funding calculated on regular market prices (9:30 a.m.–4:00 p.m. ET) and settled daily at the 4:00 p.m. close.
Background & Context
- May 29: CFTC approved Kalshi’s bitcoin perpetual futures, the first U.S.-regulated perpetual futures contract.
- Kalshi later added gold, silver and platinum perpetuals and filed for copper perpetuals on the same day as the US500 filing.
- The move expands Kalshi from event-based contracts into traditional asset classes, directly challenging CME Group’s dominance in equity-index futures.
- June: CME sued the CFTC, arguing that perpetual contracts should be treated as swaps rather than futures, a dispute now extending to the US500 proposal.
Data & Statistics
- By July 9, Kalshi’s perpetual contracts had generated $16.1 billion in trading volume, primarily from institutional investors.
- The bitcoin perpetual produced more than $5.5 billion in its first two weeks.
- US500 specifications: $1 multiplier per index point, $0.05 minimum tick, continuous trading schedule as described above.
Official Statements & Responses
- Kalshi says perpetual contracts are “functionally superior to dated alternatives,” eliminating roll-over costs, liquidity concerns and basis risk. The filing cites CFTC Chairman Michael Selig’s goal of “onshoring” perpetual products that previously developed offshore.
- CME’s lawsuit contends that a contract lacking a fixed expiration fits the legal definition of a swap, not a futures contract, and should be regulated accordingly. Kalshi rebuts this by calling CME’s focus on a fixed delivery date a “red herring” and pointing to prior CFTC comments that some perpetual-style products could qualify as futures.
Conflicting Reports & Gaps
- Sources describe the MerQube index as “similar in construction” to the S&P 500 but note it is a separate benchmark with its own methodology. No source confirms whether regulators will treat the US500 contract as a futures product or a swap, leaving the final classification uncertain.
Verbatim Quotes
- “The Contract collapses that maintenance into a single, continuously held instrument,” — Kalshi
Timeline
- May 29: CFTC approves Kalshi’s bitcoin perpetual futures.
- July 23: BitMEX announces shutdown by September 23, highlighting offshore origins of perpetual swaps.
- August 18: Kalshi files the US500 perpetual futures application with the CFTC.
What’s Next
- The CFTC has not announced a review timetable for the US500 filing. The pending decision will likely be influenced by the ongoing CME lawsuit over the legal classification of perpetual contracts.
