Commodity giants challenge Kalshi’s oil perpetual futures bid

The dispute centers on Kalshi’s October 20 filing for a product dubbed WTIPERP. Unlike standard West Texas Intermediate crude futures, which converge toward physical market prices as delivery nears, Kalshi’s structure relies on daily funding payments to anchor prices to existing benchmarks. Critics contend this mechanism creates a disconnect from physical commodity markets, potentially inviting manipulation and oversight gaps. Each proposed contract would cover 100 barrels, a fraction of the 1,000-barrel standard seen on the New York Mercantile Exchange.

Beyond the specific oil product, the council is pressuring regulators to tighten enforcement against offshore derivatives platforms that allow American retail traders to bypass restrictions using virtual private networks. This push for stricter oversight arrives as Kalshi simultaneously battles state-level legal challenges. Utah Attorney General Derek Brown recently filed a $61 million lawsuit alleging the firm’s event contracts constitute illegal gambling. While Kalshi continues to expand its offerings into precious metals and cryptocurrencies, the firm remains locked in a high-stakes jurisdictional tug-of-war across multiple state courts and the Supreme Court.