Regulated exchange Kalshi has launched the first U.S. Bitcoin perpetual futures after securing CFTC approval, opening a multi-trillion dollar market to American investors. The launch occurs as Kalshi is embroiled in a federal investigation into former Rep. George Santos, who allegedly used the platform for insider trading by betting against his own attendance at the State of the Union address after publicly stating he would be there.
Kalshi's Bitcoin perpetual futures launch
- ▪Competitors including Kraken, Robinhood, and Gemini have signaled their intent to launch CFTC-regulated perpetual futures
- ▪The offshore perpetual futures market volume reached over $90 trillion in 2025, a product class previously inaccessible to most U.S. investors
- ▪Perpetual futures, or "perps," are derivatives that allow traders to speculate on an asset's price without an expiration date
- ▪The Commodity Futures Trading Commission (CFTC) approved Kalshi’s Bitcoin perpetual contract, BTCPERP, on May 29, 2026
- ▪Regulated exchange Kalshi launched the first U.S. Bitcoin perpetual futures product for trading
George Santos insider trading investigation
- ▪Former U.S. Rep. George Santos is being investigated by the Department of Justice and the CFTC over his trading activity on Kalshi
- ▪The investigation centers on bets Santos made regarding his own attendance at President Trump's State of the Union address on Feb. 24
- ▪George Santos allegedly profited in the tens of thousands of dollars from the deceptive trades
- ▪George Santos publicly stated he would attend the State of the Union, bet against his own attendance on Kalshi, and then did not show up
- ▪Kalshi detected suspicious trades by George Santos, froze his account, and referred the case to federal prosecutors
Santos fabricated biography
- ▪Santos falsely claimed to have graduated from Baruch College, that his mother was in the World Trade Center on 9/11, and that he was Jewish
- ▪George Santos was elected to Congress after fabricating major parts of his biography, including his education, family history, and religion
Santos political downfall
- ▪Prior to his expulsion, federal prosecutors charged George Santos with 13 counts of wire fraud, money laundering, and stealing from donors
- ▪George Santos was expelled from the U.S. House of Representatives in December 2023
- ▪Santos was sentenced to seven years in prison but served only four months before President Trump commuted his sentence in October 2025
Prediction market manipulation concerns
- ▪In separate incidents, a U.S. Army soldier and a Google employee were criminally charged for alleged insider trading on the prediction market Polymarket
- ▪Prediction markets like Kalshi and Polymarket have drawn scrutiny from lawmakers over concerns about insider trading and market manipulation
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