Kalshi is trying to take one of crypto's most distinctive trading products into traditional markets. On August 18, the federally regulated exchange submitted two proposals to the CFTC seeking approval for perpetual futures contracts based on a major US stock index and copper. If approved, the contracts would bring a structure that originated in the cryptocurrency sector to stocks and commodities, extending a product type that has so far been concentrated in crypto venues into regulated markets with much broader retail and institutional reach.

The move is significant because perpetual futures, or perps, have become a fundamental part of crypto trading. Researchers from Cornell University estimate that perpetual futures comprise 93% of the entirety of crypto derivatives trading. The concept behind their popularity is simple: traders can maintain their leveraged trades without the need to roll contracts at expiration, while at the same time receiving regular funding payments that keep prices aligned with the underlying market.

The idea behind perpetual futures is not new. Economist Robert Shiller proposed a structure for perpetual futures trading back in 1993.

"A perpetual futures contract is proposed that would cash settle every day…" — Robert J. Shiller, 1993

It was in crypto, however, where the product gained broader recognition.

A stock index and a metal, priced off a Pyth feed

Kalshi's US500 Contract will track an index called the MerQube US Large Cap Index, which consists of the largest 500 companies listed in the US and uses float-adjusted market cap for their weighting.

The second proposed contract is called COPPERPERP, which is used for measuring the present price of copper in dollars per pound using the XCU/USD data feed from the Pyth Network.

At present, neither of the products has received approval from the regulator. The filings (PDF, PDF) fall under Regulation 40.3, which means that Kalshi must wait for the CFTC's sanction before launching the products on its platform.

Perpetuals differ in structure from conventional futures contracts in that they do not have an expiry date. Traders can hold long or short positions for an unlimited time period, with funds paid out to keep the perpetual aligned with the underlying price. That structure is what makes them easy to map onto a spot reference like an equity index or a commodity benchmark, while also raising the question of how regulators will treat them outside the crypto market where they first scaled.

From a Bitcoin contract in May to equities in August

Kalshi's transition into non-crypto perps comes after the regulatory opening that took place earlier this year. On May 29, the CFTC greenlit Kalshi's BTCPERP contract and released a statement indicating that perpetual contracts other than this one would be reviewed under Regulation 40.3.

Bitcoin perps launched in early June and were later joined by Ether, XRP, and several other crypto-assets. Cryptopolitan has reported that Kalshi now offers perpetuals across 13 cryptocurrencies.

The stock index and copper filings take the same idea much further. For an exchange best known for event contracts, they are another step toward competing as a broader derivatives venue, and a sign that product development is moving from crypto-native markets into instruments tied to traditional assets that are already deeply traded elsewhere.

A crypto-native structure aimed at traditional assets

The wider issue is not copper itself, but rather whether an approach to trading rooted in crypto can be useful for traditional assets. In its 2026 Crypto Market Outlook report, Coinbase Institutional put forward this idea.

"Equity perps could become the preferred choice for a new generation of retail traders." — Coinbase Institutional

Coinbase highlights constant accessibility and efficient use of funds as the main selling points. Furthermore, it argues that perps are no longer merely leveraged products but are gradually becoming elements of lending, collateral, and hedging systems.

If regulated exchanges in the US manage to include perps in stocks and commodities, crypto will have exported one of its most effective market structures to conventional financial markets. Additionally, it can create a more competitive landscape for trading volumes as traditional and crypto-native venues continue to intertwine.

A small book, ramping fast

At this point in time, Kalshi's perp business still has limited capacity. As reported by Cryptopolitan, Kalshi's daily open interest registered an all-time high of $17.98 million as of August 12. By contrast, Hyperliquid had around $11.7 billion in open interest over 377 trading pairs, meaning Kalshi's perp book is, for now, only about 0.15% of that amount.

Its expansion has, however, been rapid. Kalshi's perps hit $1 billion in notional volume in a week of launch, while it took the company's event-contract business around 40 months to hit this landmark.

There is, however, some danger involved with this expansion. CME Group filed a lawsuit against the CFTC and its Chairman, Michael Selig, in June over the approval of Kalshi as well as general policy regarding perpetual contracts. CME says that this type of offering should fall under swaps and not futures.

That case, along with the CFTC's ongoing review of Kalshi's August filings, could ultimately determine whether US500 and COPPERPERP make it to market.