Citadel and Cboe-backed group sues to stop Kalshi's single-stock perps (opens the source in a new tab)
- Kalshi won US regulatory approval last week to offer perpetual futures on single stocks such as McDonald's, SpaceX and Meta. These contracts never expire, trade around the clock and allow leverage. An industry group backed by Citadel Securities and Cboe promptly sued the CFTC.
- The group argues the contracts are security-based swaps that belong under the SEC, which would limit them to institutions. Judge Valerie Caproni set a fast briefing schedule and said the challenge looks likely to succeed.
- Kalshi calls the suit an attempt to block competition and says the launch is its most successful ever. The CFTC says incumbents are fighting its pro-innovation agenda, and NYSE owner ICE plans perps of its own.
Why it matters This is a fight over who regulates retail leverage on stocks, and who earns the fees. If perps win, trading could drift from shares and options to round-the-clock contracts outside securities rules.
Other side Supporters such as DRW's Don Wilson see perps as a cheaper hedge that avoids rolling expiring contracts, and incumbents defending options and order-flow income are hardly neutral. Still, leveraged 24-hour bets on single stocks for everyday investors are exactly what securities law was built to police.