Key Takeaways:
Kalshi's bid to bring perpetual futures to precious metals pits the prediction-markets startup against the Chicago Mercantile Exchange in a regulatory fight that will determine how U.S. law treats a new class of derivatives.
Kalshi asked the Commodity Futures Trading Commission on Tuesday for permission to offer perpetual futures contracts linked to the spot prices of gold, silver and platinum, according to a regulatory filing. The request comes one month after the CME sued Kalshi, arguing the contracts are swaps rather than futures and should be blocked from retail traders.
"Their disqualification from categorization as futures contracts on the basis of their indefinite duration cuts directly against established precedent," Kalshi told the CFTC in the filing, rebutting the CME's legal challenge.
Unlike standard commodity futures, perpetuals have no expiration date, settle entirely in cash and can trade outside traditional market hours. The CFTC approved Kalshi's first set of perpetuals in May — linked to cryptocurrency prices — and that approval now underpins the metals application. The agency has 45 days to rule on the new request, a timeline that can be extended.
The CME's lawsuit, filed in June, alleges that perpetuals fall under the Commodity Exchange Act's definition of swaps, which would subject them to stricter rules and prohibit retail participation. Kalshi's filing directly challenges that interpretation, arguing that a contract's indefinite duration does not disqualify it from futures classification. The outcome will set a precedent for how perpetuals are regulated across all asset classes in the U.S.
The regulatory stakes
If approved, Kalshi's precious metals perpetuals would introduce 24/7 cash-settled trading on gold, silver and platinum to U.S. retail traders for the first time, directly challenging the CME's dominance in metals derivatives. The CME is the world's largest futures exchange, and its gold and silver contracts are among the most actively traded commodity derivatives globally.
Perpetuals gained attention earlier this year when Hyperliquid, a decentralized exchange not available to U.S. residents, used them for oil trading during weekends when traditional markets were closed. Kalshi's push to bring the product to regulated U.S. markets represents a broader shift in how derivatives are structured and traded.
Gold prices have fallen sharply in recent weeks amid the ongoing Iran conflict, with some analysts calling the decline a buying opportunity given the metal's traditional role as a hedge during geopolitical turmoil. The ability to trade gold around the clock via perpetuals could appeal to investors seeking exposure during non-standard hours.
The CFTC's decision, expected by early September, will determine whether Kalshi can list the contracts on a continuous basis shortly after approval, as the company has stated it intends to do.
This article is for informational purposes only and does not constitute investment advice.
