U.S. prediction market platform Kalshi is preparing to bring the “perpetual futures” model—one that has quickly taken off in the cryptocurrency market—to Wall Street. The latest reports show that Kalshi is seeking regulatory approval and plans to launch about 60 perpetual futures contracts tracking major U.S. stocks and ETFs, including popular names like Tesla, Nvidia, and Apple. If approved, U.S. investors may be able to continue trading these companies’ price exposure even when the traditional stock market is closed.
However, the plan has quickly sparked regulatory controversy. Citadel Securities warned that if large amounts of derivatives linked to U.S. stock prices are traded outside the SEC’s traditional securities regulatory framework, the U.S. could gradually develop a “shadow market” running in parallel with the official stock market.
Around 60 stock and ETF perpetual contract, Kalshi takes another step beyond the crypto market
(Wall Street Journal) On September 11, it was reported that Kalshi is seeking regulatory approval to launch around 60 sustainable futures tied to high-market-cap stocks and ETFs. Potential underlying assets include major US tech stocks such as Tesla, Apple, and Nvidia.
Unlike standard futures, perpetual contracts have no fixed expiration date. As long as traders maintain sufficient margin, positions can theoretically be held indefinitely. The contracts keep prices as close as possible to the related spot assets through periodic “funding rate” mechanisms.
Kalshi’s existing perpetual products already support leveraged trading, and examples listed in official documents go as high as 6x. With 6x leverage, if the underlying price moves about 17% in the opposite direction to the position, margin could potentially be completely wiped out.
Kalshi is not jumping into stock derivatives without a foundation. In May, the CFTC approved Kalshi’s Bitcoin perpetual futures BTCPERP. After that, the platform gradually added multiple crypto assets including Ethereum, Solana, and XRP. More recently, it obtained product certifications for perpetual contracts on gold and silver as well. CFTC documents show that GOLDPERP and SILVERPERP completed certification on September 8.
Tesla and Nvidia “24-hour trading” is not the same as spot stocks being open all day
If Kalshi successfully launches Tesla and Nvidia perpetual contracts, it does not mean that Nasdaq or the US spot stock market is formally converted to a 24-hour open market. Investors are trading derivative contracts that track the prices of the underlying stocks, not trading Tesla or Nvidia stocks themselves.
The Kalshi platform is currently open for trading almost all day. Aside from routine maintenance every Thursday from 3:00 a.m. to 5:00 a.m. Eastern Time, trading is available during all other hours. In May this year, the CFTC also issued regulatory guidance on “24/7 trading, clearing and settlement,” indicating that the trend toward round-the-clock trading in the US derivatives market is accelerating.
This trend also echoes the SEC’s direction. This week the SEC held a “24-hour trading” roundtable to discuss issues such as market liquidity, trading at night, cybersecurity, and clearing infrastructure. Market participants including Citadel Securities, Nasdaq, Interactive Brokers, and Jane Street attended.
Citadel warns: a US stock “parallel shadow market” could form
The real regulatory controversy centers on whether these products should be overseen by the CFTC or the SEC.
In a comment letter submitted to regulators on September 9, Citadel Securities said that derivative products linked to publicly listed company stock, corporate revenue, profits, or other key indicators may involve securities-market risks such as insider trading and manipulating the prices of spot stocks.
Citadel warns that if these products fall outside the SEC’s existing oversight mechanisms, they could form a “parallel shadow market linked to US stocks” without the same level of best execution, order handling, trading halts, information disclosure, and cross-market surveillance systems.
One of the core issues in the controversy is that the product approval regimes of the CFTC and the SEC are not the same.
In some cases, an exchange registered with the CFTC can declare new products through a “self-certification” mechanism, with trading potentially beginning as early as the next business day. Under the SEC framework, new types of securities products usually require a public request for comment and receipt of formal approval.
Citadel therefore argues that trading platforms should not be allowed to choose their regulators simply by changing the legal definition of the products themselves.
Kalshi trading volume surges, with US stocks poised to become the next contested battlefield
Kalshi’s move into US stock derivatives at this time is not accidental.
According to the latest data from Reuters, Kalshi’s prediction market trading volume in August this year reached about $40 billion, far exceeding Polymarket. The combined trading volume of Kalshi and Polymarket is about $48.4 billion. In addition, since Kalshi’s commodity-type markets were launched only about seven months ago, monthly trading volume has already surpassed $400 million.
The traditional US stock market itself is also operating in an environment of elevated valuations and high volatility. Nvidia’s market value has recently surpassed about $5 trillion, making it one of the world’s most influential stocks. As of September 10, the US S&P 500 closed at 7,591.70, and the Nasdaq closed at 26,081.72. However, with US Treasury yields approaching 5%, energy prices surging, and the market again pricing in the possibility of Federal Reserve rate hikes, major indices have faced pressure in tandem recently.
This also means that once price exposure for popular stocks like Tesla and Nvidia can continue trading over the weekend or after the US stock market closes, capital may gradually shift from traditional pre-market and after-hours trading to a market for perpetual derivatives traded around the clock.
Sustainable contracts are blurring the line between the “crypto market” and “Wall Street”
What’s really worth关注关注 in Kalshi’s new plan isn’t just the addition of 60 derivatives products; it’s that trading infrastructure long used in the crypto market is being fed back into traditional finance
24-hour trading, no expiration date, funding rates, and high leverage—these features have mainly existed in crypto trading platforms such as Binance and Hyperliquid. Now the same structure is beginning to be transplanted into gold, indices, and even the world’s most liquid US stocks such as Tesla and Nvidia.
For investors, this means price discovery may no longer have to wait for the stock market to open at 9:30 a.m. New York time. But for regulators, the more difficult question is: when a Nvidia perpetual contract can swing violently early Sunday morning, is it still merely a “futures contract,” or has it effectively become another real US stock market? That’s the true core of the “shadow market” controversy cited by Citadel.
“24-hour US stock trading without stopping? Kalshi plans to launch 60 perpetual contracts; Citadel warns that a ‘shadow market’ is forming.” This article was first published on (BlockTempo).