The Commodity Markets Council has urged the Commodity Futures Trading Commission (CFTC) to reject Kalshi’s proposed perpetual oil contracts, warning that they could threaten market integrity and intensify competition in energy derivatives.
The industry group raised concerns about contracts tied to West Texas Intermediate crude oil. It also called for restrictions on U.S. retail traders using virtual private networks to access offshore derivatives platforms.
Kalshi Expands Perpetual Futures Offering
Kalshi submitted the proposal as it expands beyond prediction markets into additional financial products. Its existing offerings include oil futures and perpetual contracts linked to Bitcoin, Ethereum, XRP, HYPE, gold and silver.
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Unlike traditional futures, perpetual contracts have no fixed expiration date, allowing traders to maintain positions indefinitely. This structure has raised concerns about market oversight and risk management.
The Commodity Markets Council has also raised concerns about Hyperliquid, a decentralized platform offering perpetual contracts tied to traditional assets.
Legal Challenges Add to Pressure
Kalshi faces a separate legal challenge in Utah, where Attorney General Derek Brown sued the company on October 20 over its sports, political and cultural markets. The lawsuit alleges that these offerings violate state gambling laws.
Utah is seeking to block the markets and recover profits. Meanwhile, 39 states and Washington, D.C., have asked the U.S. Supreme Court to examine whether federal derivatives law overrides state gambling restrictions.
The disputes add to regulatory uncertainty as Kalshi expands its U.S. derivatives business.
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