Phantom launches Kalshi prediction markets for US users

What happened

Phantom announced the beginning of a staged US launch of prediction market trading through its mobile wallet on Friday, powered by Kalshi, a CFTC-registered derivatives exchange and clearing organization. The rollout extends access gradually to eligible US users over the coming weeks. Phantom previously introduced prediction markets via Kalshi in December, but restricted them to non-US users; the current offering represents the wallet's first regulated prediction market integration available to Americans.

To begin trading, users must complete Kalshi's know-your-customer process, which can require a legal name, date of birth, residential address, Social Security number, and government-issued ID verified through third-party providers like Socure. Users then create a new Kalshi account through Phantom or link an existing one using a one-time code. Once verified, traders can access event markets covering sports, politics, economics, and culture directly from Phantom's Predict tab without leaving the app.

Trading occurs through separate account balances. Funds held on Kalshi's own app or website do not appear in Phantom, and vice versa. Users fund trades using Phantom's CASH stablecoin or Solana tokens, with money moving to Kalshi for each purchase and sale proceeds or winnings returning to Phantom via Stripe. Phantom charges $0.01 per contract on top of Kalshi's $0.01 exchange fee, plus variable network costs, totaling $0.02 in platform fees before network charges. The wallet warns that limited buyer interest can prevent users from selling positions even when showing profits.

Why it matters

Phantom's US launch demonstrates an emerging regulatory model for crypto platforms entering traditionally restricted financial services. By securing CFTC no-action relief before launch, Phantom established a framework that could guide how other software providers offer regulated derivatives access. Kalshi's VP of Business Development Max Crowley characterized the arrangement as a template for expanding prediction market access, and the CFTC extended similar relief to other software providers in September. The integration also highlights crypto wallet functionality evolving beyond token swaps, with established wallets now offering direct access to regulated financial products without requiring users to move funds to separate platforms.

Background

Phantom obtained conditional no-action relief from CFTC staff in March through Staff Letter 26-09, which permits the wallet to serve as a non-custodial interface without registering as an introducing broker or associated person. The relief required Phantom and each exchange partner to agree to joint and several liability for violations, mandated that users retain independent access to Kalshi, and imposed ten conditions governing the arrangement. The model explicitly allows transaction-based fees and revenue sharing while requiring clear disclosures of relationships and potential conflicts. Phantom's Chief Counsel Kevin Jacobs stated the company sought this relief specifically for the Kalshi integration.

Phantom launched its CASH stablecoin on Solana in September 2025 through Stripe's Bridge unit using the Open Issuance platform. The stablecoin now serves as the primary funding mechanism for the prediction market integration, though users can also trade using other Solana tokens. The wallet's earlier December 2024 prediction market feature, also powered by Kalshi, operated without the identity verification requirements now imposed in the US version, as those markets remained restricted to non-US jurisdictions. In June 2026, Phantom shifted new non-US prediction market positions to World Prediction Markets, a non-custodial Solana protocol with automatic on-chain settlement.

What is still unclear

Kalshi faces overlapping state challenges that create uncertainty about which markets will remain available to US users long-term. Michigan won a preliminary injunction in September requiring Kalshi to geofence sports contracts from the state, with violations carrying $500,000-a-day fines. Utah filed a civil lawsuit in October seeking up to $61.2 million in allegedly unlawful fees from Kalshi, contending that event contracts violate state gambling laws and challenging federal CFTC jurisdiction. According to Unchained reporting, market restrictions already apply in Michigan, Nevada, and Washington. Federal appeals courts have split on whether sports contracts constitute swaps under CFTC jurisdiction, and New Jersey officials petitioned the Supreme Court to review a Third Circuit ruling favoring Kalshi, leaving the ultimate regulatory boundary unresolved.

What to watch

The Supreme Court's decision on whether prediction contracts fall under state or federal oversight could reshape the entire regulatory framework for Phantom's integration. If states succeed in treating certain contracts as illegal gambling outside CFTC authority, Kalshi could face forced withdrawal from additional jurisdictions, potentially requiring Phantom to remove or modify markets for affected users. The Tenth Circuit's handling of Utah's appeal and New Jersey's Supreme Court petition represent critical decision points. Additionally, the Commodity Markets Council recently urged the CFTC to deny Kalshi's request to offer perpetual crude oil contracts, signaling potential regulatory limits on the types of markets the exchange can offer.

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