Why Kalshi Chose Crypto Perps for Its First Move Beyond Prediction Markets

Summary

Laura Shin interviews Kalshi's Head of Crypto John Wang about the launch of CFTC-regulated crypto perpetual futures in the US. Wang explains what perps are, their advantages over options and futures, how Kalshi sets leverage caps per asset using risk models, how they select crypto assets, and how the index price is derived from regulated benchmark providers.

• Kalshi launched the first CFTC-regulated crypto perps in the US, aiming to bring a $90 trillion offshore market onshore.
• Perpetual futures allow traders to go long or short with leverage and without an expiry date, offering simplicity and capital efficiency.
• Leverage caps vary by asset (e.g., 6x BTC, 4.4x ETH, 2.1x HYPE) and are set by Kalshi's risk engine after CFTC review.
• Asset listings are based on user demand, regulatory precedents, and liquidity considerations, with plans to expand.
• The index price for perps is aggregated from multiple CFTC-regulated exchanges via a benchmark provider to ensure tamper-resistance.
• The platform is in early days, with open interest metrics publicly available but not yet prominently displayed.