Kalshi and US Crypto Perpetual Contracts Face Uncertain Regulatory Landscape

Kyle Samani's recent analysis has shed light on the complex relationship between current US derivatives regulation and decentralized protocols.

The study examines the potential outcomes of the implementation of Kalshi and US crypto perpetual contracts, revealing three possible scenarios:

Firstly, if the US market can already offer unregulated perpetual contracts, Kalshi's previous efforts may become irrelevant. Secondly, if the CLARITY Act passes smoothly, protocols may be able to offer perpetual contracts in the US without registering as a DCO or DCM.

Lastly, even if users accept these products, protocols may still be unable to distribute them within a compliant framework, rendering them unable to legally enter the US financial system.