The Department of Justice and Commodity Futures Trading Commission are investigating former congressman George Santos after Kalshi detected suspicious trades tied to his attendance at President Trump's February State of the Union address. According to NPR, Santos allegedly made tens of thousands of dollars betting that he would not attend after posting a video on X saying he would be in the gallery. He later posted from an airport as President Trump spoke, and the odds on his attendance plunged. Kalshi has requested to interview Santos as part of its investigation, but he has dodged those requests, as reported by NPR. Reached by NPR, Santos said, 'Well, that's news to me.' The investigation highlights intensifying scrutiny over insider trading allegations in prediction markets, with federal prosecutors charging a U.S. Army Special Forces soldier with making about $409,881 in Polymarket bets tied to the capture of Venezuelan leader Nicolás Maduro in April.
Cryptocurrency prediction markets platform Kalshi has reportedly filed to certify perpetual futures tied to XRP, Solana, and Dogecoin following its successful CFTC approval for Bitcoin perpetual futures. According to BankXRP, the reported filing would expand Kalshi's crypto derivatives plan beyond Bitcoin, though the XRP product should be treated as a reported filing rather than a confirmed launch until the regulator provides public approval. The filing comes as Kalshi has grown beyond its original prediction market base, reaching a $22 billion valuation after a $1 billion Series F round, with institutional trading volume rising sharply. The reported XRP filing follows rising demand for regulated U.S. crypto derivatives products, as XRP already has a wider institutional market structure than in past cycles, with CME using CF Benchmarks data for XRP futures and crypto.news tracking rising XRP Ledger activity and ETF demand.
Cryptocurrency exchange Coinbase and prediction markets platform Kalshi announced on Friday they are introducing perpetual crypto futures, marking the first time such instruments will be available to U.S. investors through domestic, regulated exchanges. According to Reuters, the launch follows Commodity Futures Trading Commission listing approval for the two firms, effectively transitioning perpetual futures from a regulatory gray area into the oversight of domestic exchanges. The move provides a formal onshore framework for institutional and retail investors previously forced to navigate opaque or offshore venues for access. As reported by Reuters, perpetual futures, or 'perps,' are derivatives that lack a traditional expiration date, allowing traders to maintain positions indefinitely without the need to roll over contracts. These instruments also permit high degrees of leverage — often as much as 50-to-1, enabling investors to amplify their exposure to market moves.
The derivatives rollout addresses a significant market gap, as crypto derivatives account for about 80% of global crypto trading volume. As reported by Coinbase, the company cited Deribit data showing more than $31 billion in bitcoin options open interest as of May 27, with Deribit holding roughly $31 billion in Bitcoin options open interest compared to $2.7 billion on OKX, $1.8 billion on Binance and $1.2 billion on Bybit. The perpetual futures trading volume reached $61.7 trillion in 2025, up 29% on 2024, according to data from market data provider CryptoQuant, as reported by Reuters. The contracts have surged in popularity over the past year, as crypto traders have sought new ways to profit from volatility amid a broader slump in token prices since October. For trading firms, the access could support hedging, volatility trading, and BTC-linked basis strategies.
The regulatory path rests on CFTC staff positions tied to foreign futures and margin arrangements. According to the CFTC staff letter, certain crypto asset perpetual contracts may qualify as foreign futures under Commission Regulation 30.1. The launch follows CFTC guidance on 24/7 trading, clearing and settlement, with crypto asset derivatives described as particularly well suited to round-the-clock markets. However, the CFTC issued a policy statement on Friday clarifying its oversight of such contracts, mandating a case-by-case regulatory review process for any new perpetual products referencing assets beyond current approved listings, as reported by Reuters. The first phase will focus on Deribit options, with crypto perpetual futures, more collateral options, and other derivatives products expected later. The CFTC also said perpetual contract design may not suit every asset class, encouraging firms to submit products based on other assets for review and approval before listing them. The regulator said Kalshi submitted the BTCPERP contract for review under Commission Regulation 40.3.
Reports indicate that Kalshi plans to use CF Benchmarks pricing data for its proposed crypto perpetual products, which already provides regulated crypto reference rates used across several institutional products. The pricing framework may help Kalshi set reference prices and funding rates for perpetual contracts, as such contracts do not expire and usually use funding payments to keep futures prices close to spot prices. This competitive advantage positions Kalshi alongside other major players in the expanding U.S. derivatives race. Separate crypto.news coverage reported that Kraken plans to launch regulated Bitcoin perpetual futures through Bitnomial within 30 days, placing Kalshi, Coinbase and Kraken in a fast-moving U.S. derivatives race. The launch comes months after the US Securities and Exchange Commission and CFTC said they would explore ways to bring perpetual futures trading onshore in a joint statement published in September 2025.
The launch signifies a major strategic shift for Kalshi, moving it beyond its roots as a prediction market into the broader, high-volume world of financial derivatives. Tarek Mansour, CEO of Kalshi, said in a statement: "Onshore, safe, and regulated perps will improve capital allocation and risk management for countless American businesses." As reported by Reuters, this marks Kalshi's evolution from prediction market leader to next-gen derivatives exchange. The company's acquisition of Deribit provides the institutional access point for the new regulated derivatives offering, with Deribit handling more than $185 billion in trading volume in July 2025 and holding about $60 billion in open interest at the time of acquisition. The reported XRP filing adds another layer to Kalshi's expansion, potentially giving U.S. traders a regulated way to trade XRP price exposure through perpetual futures without holding the token directly. Kalshi recorded about $16.8 billion in monthly volume in May, compared with roughly $7 billion for Polymarket, according to The Block's data dashboard, maintaining its position as the dominant prediction market despite intensifying regulatory scrutiny.
