Crypto wallet provider Phantom has begun rolling out access to Kalshi's prediction markets to users in the United States, allowing them to trade event contracts tied to real-world outcomes directly through its app.

Trades are funded through Phantom Cash, using the company's dollar-pegged CASH stablecoin — meaning trading balances are designed to hold parity with the U.S. dollar — and users must complete identity verification before they can trade. Phantom, a self-custody wallet that first gained traction in the Solana ecosystem and has since expanded to additional blockchain networks, is the latest crypto platform to bring event contracts to a mainstream wallet audience, underscoring how wallets are evolving from storage tools into venues for federally regulated event trading.

Prediction Markets Under CFTC Oversight

Prediction markets allow users to buy and sell contracts whose payouts depend on the outcomes of real-world events, ranging from elections and economic data releases to sports results. Kalshi operates as an exchange for such event contracts under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

State-Level Restrictions

Phantom will restrict access to certain markets in Michigan, Nevada, and Washington as legal disputes continue over whether federally regulated prediction markets are subject to state gambling laws. The company did not specify which markets would be affected, and the practical effect for users is that availability can differ from state to state while the legal disputes play out.

CFTC 'No Action' Relief

Phantom General Counsel Kevin Jacobs said the company was comfortable proceeding, citing the CFTC's jurisdiction over the products. The regulator granted Phantom conditional 'No Action' relief from broker registration requirements in March 2026.

According to the regulator, the relief applies under specific conditions, including that Phantom does not hold customer funds or intermediate trades, with orders routed directly to registered market participants. In practice, those conditions position Phantom as an order-routing layer rather than a custodian, and the relief holds only as long as they are observed.

A Fast-Growing Sector

The integration gives Kalshi access to Phantom's crypto-native user base as competition intensifies across the prediction markets sector. Kalshi has recorded more than $291 billion in trading volume in 2026 so far, with October 2026 activity approaching a new monthly record. Whether October sets a new monthly record, whether access extends beyond the three restricted states, and how courts and regulators resolve the state-versus-federal question are the main developments to watch as the sector grows.

The rollout highlights a broader push by crypto platforms to embed prediction markets into wallets and trading applications, even as regulatory uncertainty over sports and other event contracts remains unresolved.