Crypto wallet provider Phantom has launched prediction markets for eligible US users through an integration with Kalshi, allowing them to trade on crypto prices, sports and other real-world events directly within its app. The move follows no-action relief from the Commodity Futures Trading Commission and lands as the agency battles a US state over the legality of such contracts.
Phantom's integration, announced on Wednesday, offers CFTC-regulated event contracts including short-term Bitcoin price markets that settle every 15 minutes. Trades can be funded through Phantom Cash balances, which are denominated in the CASH stablecoin. Kalshi handles customer verification, account management and trade execution, while Phantom provides access through its app via a new Predict tab. Availability varies by state and market category, and eligible users can view live market data, sports scores and market discussions before placing trades through an interface similar to a cryptocurrency token swap.
The launch follows no-action relief granted by the CFTC in March, allowing Phantom to connect users to regulated markets without registering as an introducing broker, subject to certain conditions.
Phantom's entry comes amid a widening legal dispute over prediction markets in the US. On Monday, the CFTC sued Utah after the state challenged Kalshi's event contracts under its gambling laws, adding to a series of cases over whether federal derivatives regulation supersedes state gambling laws.
Despite the legal uncertainty, trading activity continues to grow. Kalshi recorded $10.8 billion in crypto contract volume over the 30 days ending Oct. 27, up 19.6% from the previous period, according to data compiled by DeFi Rate.
Analysis
Why This Matters
- Prediction markets are now embedded in a mainstream crypto wallet, giving eligible US users direct access to CFTC-regulated event contracts alongside ordinary token transactions.
- The CFTC's lawsuit against Utah sharpens the question of whether federal derivatives law overrides state gambling bans, a decision that could shape where and how these markets operate nationwide.
- Trading volumes are rising despite the legal fight, indicating strong demand for event-based trading products.
Background
Prediction markets allow users to trade on the outcome of future events, such as crypto prices, sports results and other real-world outcomes. Kalshi operates as a CFTC-regulated exchange for such event contracts. In March, the CFTC granted Phantom no-action relief, permitting the wallet to connect users to regulated markets without registering as an introducing broker. The industry's legal status has since been contested, with Utah challenging Kalshi's contracts under state gambling laws and the CFTC responding with a lawsuit against the state on Monday.
Key Perspectives
Phantom: says the integration offers CFTC-regulated event contracts, including short-term Bitcoin price markets that settle every 15 minutes.
CFTC: granted no-action relief for Phantom's integration and sued Utah after the state challenged Kalshi's event contracts, reflecting its position that federal derivatives regulation governs these markets.
Utah: challenged Kalshi's event contracts under the state's gambling laws.
What to Watch
- The outcome of the CFTC's lawsuit against Utah and whether other states pursue similar challenges to Kalshi's event contracts.
- Which states and market categories become available in Phantom's Predict tab as the rollout continues.
- Whether Kalshi's crypto contract volume keeps growing from the $10.8 billion recorded in the 30 days to Oct. 27.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedPhantom launched Kalshi-powered prediction markets for US users.Cointelegraph.com News: “Phantom launches Kalshi-powered prediction markets for US users”
- Partly supportedThe launch brings CFTC-regulated event contracts to a mainstream crypto wallet.Cointelegraph.com News: “The crypto wallet’s new integration offers CFTC-regulated event contracts through Kalshi”
- SupportedThe legal fight over US prediction markets is intensifying.Cointelegraph.com News: “Phantom’s entry into prediction markets comes amid a widening legal dispute over the industry in the US.”
- SupportedThe integration lets eligible US users trade on crypto prices, sports and other real-world events in the app.Cointelegraph.com News: “Crypto wallet provider Phantom has launched prediction markets for eligible US users through an integration with Kalshi, allowing them to trade on crypto prices, sports and other real-world events directly within its app.”
- SupportedPhantom’s integration was announced on Wednesday.Cointelegraph.com News: “According to Wednesday’s announcement, the integration offers CFTC-regulated event contracts”
- SupportedSome Bitcoin price markets settle every 15 minutes.Cointelegraph.com News: “the integration offers CFTC-regulated event contracts, including short-term Bitcoin price markets that settle every 15 minutes.”
- SupportedTrades can be funded using Phantom Cash balances denominated in the CASH stablecoin.Cointelegraph.com News: “Trades can be funded through Phantom Cash balances, denominated in the CASH stablecoin.”
- SupportedKalshi handles customer verification, account management and trade execution.Cointelegraph.com News: “Kalshi handles customer verification, account management and trade execution, while Phantom provides access through its app.”
- SupportedThe service is available through a new Predict tab, with availability varying by state and market category.Cointelegraph.com News: “The service is rolling out through a new Predict tab in Phantom, with availability varying by state and market category.”
- SupportedCFTC no-action relief granted in March lets Phantom connect users to regulated markets without registering as an introducing broker, subject to conditions.Cointelegraph.com News: “The launch follows no-action relief granted by the Commodity Futures Trading Commission (CFTC) in March, allowing Phantom to connect users to regulated markets without registering as an introducing broker, subject to certain conditions.”
- SupportedOn Monday, the CFTC sued Utah after the state challenged Kalshi’s event contracts under gambling laws.Cointelegraph.com News: “On Monday, the Commodity Futures Trading Commission sued Utah after the state challenged Kalshi’s event contracts under its gambling laws”
- SupportedKalshi recorded $10.8 billion in crypto contract volume over the 30 days ending Oct. 27, up 19.6% from the previous period, according to DeFi Rate data.Cointelegraph.com News: “Kalshi recorded $10.8 billion in crypto contract volume over the 30 days ending Oct. 27, up 19.6% from the previous period, according to data compiled by DeFi Rate.”