Phantom has begun giving eligible users in the United States a prediction-market trading interface within the same application used for its crypto wallet. The 28 October announcement identifies Kalshi as the regulated US exchange behind the new service. Available categories include short-dated cryptocurrency price outcomes, sport and economic events. This is a new US offering under a specific regulatory arrangement, not a claim that Phantom has become a US-registered derivatives exchange itself.[1][2]
The service follows Commodity Futures Trading Commission staff no-action relief, Letter 26-09, which addresses whether Phantom's passive software interface must register as an introducing broker under stipulated conditions. No-action relief is a defined enforcement position rather than a blanket statutory exemption for any wallet displaying financial instruments. The exchange, account and verification duties still have to be allocated to the properly regulated participants.[1]
Phantom says Kalshi performs the required customer diligence, approves and holds user trading accounts, and executes orders placed through the wallet interface. Customers use Phantom Cash balances, with the CASH stablecoin forming part of the wallet funding and redemption process described for the US product. The interface can display chats, event scores, price indications and outcome markets, but those features should not be mistaken for the legal responsibilities of a futures commission merchant or exchange operator.[1]
Regulated roles in the US Phantom service
Availability is constrained by geography and product category. The company's help material excludes certain states, including Michigan, Nevada and Washington, from the US Kalshi feature and warns that individual contract types can have additional restrictions. A customer with a Phantom app account or a valid crypto wallet is not therefore automatically eligible to place an event contract. Identity verification remains part of the regulated onboarding process.[1]
The service also differs from Phantom's earlier non-US tokenised prediction-market arrangements. Existing older documentation refers to World or DFlow infrastructure for other jurisdictions or periods; it should not be carried over as if it described the contractual counterparties for every new US trade. The present product's regulatory narrative is specifically Phantom acting as a software front end and Kalshi handling regulated event-market functions.[1]
Regulated roles in the US Phantom service
| Function | Identified party | Limitation |
|---|---|---|
| Customer interface | Phantom | Not itself a CFTC-registered exchange |
| Regulated contract market | Kalshi | Eligibility and exchange rules apply |
| Customer due diligence | Kalshi | Identity checks still required |
| US accessibility | Eligible jurisdictions | State and category restrictions |
For brokerage software providers, the case illustrates the difference between distributing a regulated market through an embedded interface and becoming the market intermediary of record. Those distinctions affect disclosures, funds movement, restrictions and handling customer complaints. Event contracts also carry the possibility of total loss on an incorrect outcome; a familiar app layout does not alter the economic or regulatory nature of the instrument.[1]
Sources & further reading
- Phantom Brings Prediction Markets to U.S. Users Phantom · 28 Oct 2026 · Accessed 31 Oct 2026
- Feature availability by region Phantom Support · 31 Oct 2026 · Accessed 31 Oct 2026