Perpetual futures, a type of derivative that does not expire, have seen heightened interest as they move onto U.S. regulated markets. Kalshi’s perpetual futures reached $1 billion in trading volume within a week of their June launch, the firm’s largest product debut since its prediction markets. The exchange has applied for regulatory permission to offer perpetual contracts tied to gold and silver, indicating a potential expansion beyond digital assets. Bank of America estimates annual perpetual futures trading volume at roughly $90 trillion. The Commodity Futures Trading Commission cleared Kalshi to offer the contracts on May 29, and Coinbase received approval to list regulated perpetual futures in the United States.

Wall Street firms are examining the products cautiously. While individual traders and smaller market participants have been early adopters, major banks are delaying large‑scale rollouts pending clearer regulatory guidance, sufficient liquidity and robust infrastructure. Proprietary trading firms and market makers, which can operate with fewer capital constraints, are expected to lead initial activity. Unlike traditional futures that close for weekends, perpetual contracts trade continuously, potentially allowing traders to hedge positions across market hours.

Regulators are debating whether certain perpetual contracts should be classified as futures or swaps, a distinction that influences margin requirements and participant eligibility. Legal challenges have already emerged, with CME contesting the CFTC’s treatment of Kalshi’s bitcoin perpetuals. Industry participants note that market depth and collateral system efficiency remain concerns for institutional adoption. For now, large banks are watching rather than leading, awaiting further clarification and market maturity.