Kalshi is reportedly preparing to enter the cryptocurrency derivatives space, signaling a major shift beyond its core focus on event-based trading.

Moving Into Crypto Perpetual Futures

According to reports, Kalshi is exploring the launch of perpetual futures contracts, often called “perps,” tied to digital assets like Bitcoin.

Perpetual futures allow traders to:

• Speculate on price movements without expiration dates
• Maintain continuous market exposure
• Use leverage to amplify positions

This type of product has become one of the most widely traded instruments in crypto markets.

Expanding Beyond Prediction Markets

Kalshi is best known for offering event-based contracts, where users bet on outcomes such as elections or economic indicators.

A move into perpetual futures would:

• Shift the platform toward continuous financial markets
• Attract a broader range of traders
• Position Kalshi closer to traditional derivatives exchanges

This could significantly expand its addressable market.

Regulatory Advantage in the US

One of Kalshi’s biggest differentiators is its regulatory status.

The platform is overseen by the Commodity Futures Trading Commission, making it one of the few fully regulated derivatives venues in the United States.

With regulators increasingly open to crypto derivatives, Kalshi could:

• Offer compliant alternatives to offshore exchanges
• Capture trading volume currently outside US jurisdiction
• Benefit from growing institutional interest

Momentum Building for Perpetual Futures

The timing aligns with broader industry trends.

Perpetual futures trading continues to grow, with daily volumes still reaching tens of billions of dollars despite cooling from peak levels.

Meanwhile, major platforms are expanding into similar products:

• Coinbase has launched perpetual-style futures tied to equities
• Kraken offers tokenized stock perpetual futures

This reflects a shift toward 24/7, multi-asset trading environments.

Bridging Traditional Finance and Crypto

Kalshi’s potential move highlights a convergence between:

• Prediction markets
• Crypto derivatives
• Traditional financial instruments

By combining regulatory compliance with crypto-native products, the platform could play a key role in bringing derivatives trading onshore in the US.

What Comes Next?

While the plans are not yet officially confirmed, the move would mark a significant evolution for Kalshi.

If launched, it could:

• Increase competition in the derivatives space
• Accelerate regulatory clarity in the US
• Further legitimize crypto-based trading products

Arbitrum has taken emergency action to freeze over $71 million worth of Ether, marking one of the most significant interventions by a blockchain governance body in recent months.

Emergency Freeze After Major Exploit

Arbitrum’s Security Council froze 30,766 ETH tied to the recent hack of the Kelp DAO.

The funds have been moved to a restricted intermediary wallet, meaning:

• The attacker can no longer access the assets
• Movement of funds now requires governance approval

This effectively locks down a large portion of the stolen crypto.

Fallout From the $293M Hack

The freeze follows a massive exploit that saw Kelp DAO lose at least $293 million, reportedly through a bridge connected to LayerZero.

The stolen assets were then used to:

• Borrow funds on Aave
• Create roughly $195 million in bad debt
• Trigger widespread withdrawals across DeFi markets

The incident quickly spread risk across interconnected protocols.

Security Council Steps In

The decision was made by Arbitrum’s 12-member Security Council, with 9 members voting in favor of freezing the funds.

Council member Griff Green said the move came after extensive debate covering:

• Technical feasibility
• Ethical implications
• Political considerations

The council also worked with law enforcement before taking action.

A Controversial Move

The freeze has reignited a long-standing debate in crypto:

Should blockchains have the power to freeze funds?

Critics argue:

• It undermines decentralization
• It introduces centralized control
• It contradicts crypto’s core principles

Supporters counter:

• It protects users from large-scale exploits
• It preserves trust in the ecosystem
• It can prevent systemic risk

Balancing Security and Decentralization

Arbitrum stated that the action was taken to protect the network while minimizing disruption to users and applications.

However, the move highlights a growing tension in crypto:

• Pure decentralization vs practical security measures
• Immutability vs intervention during crises

What Happens Next?

The frozen funds can only be moved through future governance decisions, leaving open questions about:

• Potential recovery or restitution
• Legal involvement
• Long-term handling of stolen assets

A Defining Moment for DeFi Governance

This incident may set a precedent for how layer-2 networks respond to major hacks.

As DeFi grows more interconnected, decisions like this could become more common, forcing the industry to confront how much control is acceptable in the name of security.

Coin Center is doubling down on a core argument in crypto policy debates: writing and publishing code should be treated as free speech under the US Constitution.

The position comes as developers face growing legal uncertainty over whether they can be held responsible for how their software is used.

Code as Speech, Not a Financial Service

In a new report, Coin Center leaders Peter Van Valkenburgh and Lizandro Pieper argued that publishing software is fundamentally an act of expression.

They compared writing code to:

• Writing a book
• Publishing a recipe
• Sharing ideas publicly

Under this view, developers are speakers and inventors, not financial intermediaries.

First Amendment Protections at Stake

The argument centers on the First Amendment, which protects freedom of speech.

Coin Center warns that requiring developers to register, license, or restrict their code could amount to “prior restraint”, a legal concept that is typically unconstitutional.

Their position is clear:
Code should not be regulated like a financial service if it is merely published.

When Regulation Might Apply

The report draws an important distinction.

Developers may fall under regulation if they:

• Control user funds
• Execute transactions on behalf of users
• Act as intermediaries or custodians

But simply writing and releasing code should remain protected.

Legal Uncertainty After High-Profile Cases

The debate has intensified following prosecutions of crypto developers, including:

• Roman Storm
• Developers behind Samourai Wallet

These cases raised concerns that developers could be held criminally liable for how others use their software.

Courts Struggling With “Code vs Conduct”

Some lower courts have argued that because software can produce real-world effects, it resembles conduct rather than speech.

Coin Center rejects this view, calling it a misinterpretation of existing legal precedent.

The report cites the Lowe v. SEC decision, which found that publishing financial information without managing client assets is protected speech.

Broader Implications for Crypto Innovation

At the heart of the debate is how to regulate decentralized systems that remove intermediaries.

Crypto technology allows:

• Peer-to-peer transactions
• Self-custody of assets
• Reduced reliance on traditional financial institutions

Coin Center argues that labeling developers as intermediaries for convenience risks stifling innovation.

A Defining Issue for the Industry

The outcome of this debate could shape the future of crypto development in the US.

If courts side with Coin Center’s view:

• Developers gain stronger legal protection
• Open-source innovation may accelerate

If not:

• Developers could face increased legal risk
• Regulatory pressure on software creators could intensify

“Speech Cannot Be Licensed Into Silence”

Coin Center’s message is ultimately philosophical as much as legal.

In a world where software underpins economic activity, they argue that protecting code as speech is essential to preserving freedom and innovation.