Derivatives
Coinbase and Kalshi Seek Regulatory Approval for Perpetual Futures in U.S. Market
Coinbase Financial Markets has submitted a filing to the Commodity Futures Trading Commission (CFTC) for single-stock perpetual futures, initially focusing on Apple, Tesla, and Nvidia. This move aims to bring a product typically associated with offshore crypto exchanges into the regulated U.S. market.
The filing, made under the CFTC’s product-certification process, indicates that while Coinbase has proposed these contracts, they are not yet live and remain under regulatory review. The introduction of perpetual futures allows traders to take leveraged positions without owning the underlying stocks, raising questions about market integrity and settlement procedures.
Similarly, KalshiEX has filed proposed listing standards for perpetual security futures linked to 58 stocks and exchange-traded funds (ETFs). This filing, published under SEC File No. SR-KALSHIEX-2026-02, also awaits CFTC approval. Like Coinbase, KalshiEX aims to adapt the perpetual futures model, which has gained traction in crypto trading, to the U.S. equity market.
Both companies are pursuing a regulated approach to derivatives trading, with Coinbase leveraging its Designated Contract Market status to navigate the regulatory landscape. If approved, these products could significantly alter the trading dynamics for U.S. equities, potentially expanding to a wider range of stocks in the future.
FAQ
What are perpetual futures?
Perpetual futures are a type of derivative that allows traders to take leveraged positions on an asset without owning the underlying asset. They do not have an expiration date, enabling continuous trading.
Which companies are seeking regulatory approval for perpetual futures in the U.S. market?
Coinbase Financial Markets and KalshiEX are the two companies seeking regulatory approval for perpetual futures in the U.S. market.
What stocks are initially targeted by Coinbase for perpetual futures?
Coinbase is initially focusing on single-stock perpetual futures for Apple, Tesla, and Nvidia.
What is the status of the filings made by Coinbase and KalshiEX?
Both Coinbase's and KalshiEX's filings are currently under regulatory review by the Commodity Futures Trading Commission (CFTC) and have not yet been approved.
How could the approval of these perpetual futures impact the U.S. equity market?
If approved, these perpetual futures could significantly alter trading dynamics for U.S. equities, potentially allowing for more leveraged trading options and expanding to a wider range of stocks in the future.