The Commodity Markets Council, which represents derivative exchanges such as the CME Group, wants the CFTC to reject Kalshi's request to offer perpetual crude oil contracts. The group also wants the regulator to block U.S. retail traders from reaching offshore derivatives platforms.
The Commodity Markets Council (CMC) urged the CFTC to deny Kalshi's request to offer perpetual crude oil contracts, according to a Bloomberg report cited by CoinGape. The CMC represents derivative exchanges such as the CME Group.
CMC says oil perpetuals risk market integrity
The CMC argues that the perpetual contracts pose risks to market integrity. Kalshi filed earlier this week to get the regulator's approval for WTI perpetuals.
Kalshi already offers WTI futures that trade on weekdays, which it launched earlier this month. Approval would add to the prediction market platform's growing list of perpetual futures.
Earlier this month, Kalshi also launched its US 500 perpetual futures contract. The platform also offers crypto perpetuals including Bitcoin, Ethereum, XRP and HYPE, plus CFTC-regulated gold and silver perpetuals.
Offshore platforms draw a second request
The CMC also asked the CFTC to work with other regulators to block U.S. retail traders from using VPNs to reach offshore derivatives platforms. The request comes as offshore crypto platforms such as Hyperliquid continue to see strong adoption, per CoinGape.
Hyperliquid offers perpetual TradFi markets that trade 24/7. CME and NYSE reportedly urged the CFTC earlier this year to tighten its scrutiny of market manipulation and sanctions-exposure concerns on perpetual decentralized exchanges.
Hyperliquid, however, is reportedly working with the CFTC to enter the U.S. market, which would increase competition for Kalshi and other derivatives exchanges. At a White House meeting with crypto stakeholders, President Donald Trump confirmed that the regulator was looking to bring the perp DEX into the U.S. in a compliant way.
Source: CoinGape
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