Crypto wallet provider Phantom has launched prediction markets for eligible US users through an integration with Kalshi, enabling them to trade on crypto prices, sports and other real-world events directly within its app.

According to Wednesday's announcement, the integration offers CFTC-regulated event contracts — derivatives whose payouts depend on the outcome of a defined event — including short-term Bitcoin price markets that settle every 15 minutes. Trades can be funded through Phantom Cash balances, denominated in the CASH stablecoin.

Under the arrangement, Kalshi handles customer verification, account management and trade execution, while Phantom provides access through its app. The launch follows no-action relief granted by the Commodity Futures Trading Commission (CFTC) in March — a regulatory decision not to pursue enforcement for a specified activity — allowing Phantom to connect users to regulated markets without registering as an introducing broker, a category of intermediaries that solicits customer derivatives orders, subject to certain conditions.

The service is rolling out through a new Predict tab in Phantom, with availability varying by state and market category. Eligible US users can view live market data, sports scores and market discussions before placing trades through an interface similar to a cryptocurrency token swap.

Phantom's entry into prediction markets comes amid a widening legal dispute over the industry in the US. On Monday, the Commodity Futures Trading Commission 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 — a question central to how broadly event contracts can be offered across US states, where availability already varies by market category and jurisdiction. Separately, the Pentagon banned US forces from using military information to bet in prediction markets.

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. The growth sets up the near-term questions to watch: how courts weigh federal derivatives authority against state gambling laws, and how Phantom's state-by-state availability develops as the rollout continues.