Phantom Wallet Integrates Prediction Markets, Targeting US Users

The crypto wallet Phantom has significantly expanded its service offerings. The company recently announced the integration of the Kalshi prediction market within its app, now available to users in the United States. This move allows users to buy and sell contracts on future events directly within the Phantom interface, without needing to navigate to an external platform.

How It Works and Access Requirements

The rollout of this feature began on October 23rd and will be phased in over the coming weeks. To participate, users must first complete a know-your-customer (KYC) verification process with Kalshi. All trading activity will be facilitated through the user's Phantom Cash account, which holds the CASH dollar-pegged stablecoin.

Here's the fund flow: users transfer CASH into Kalshi, where it is converted to fiat currency for settlement. Any profits or withdrawal amounts are sent back to the user's Phantom Cash account. Currently, the fee per contract is approximately $0.02, with a small additional network fee for fund transfers.

State-Specific Trading Limitations

Owing to varying regulatory landscapes across the US, Phantom's launch includes notable geographic restrictions. The company has limited access to certain market categories in specific states to align with local laws.

  • Michigan: Contracts related to sports markets are temporarily unavailable.
  • Nevada: Restrictions apply to sports, election, political, and entertainment markets.
  • Washington: The most extensive restrictions are here, barring access to markets in categories like culture, technology, and geopolitics, in addition to those mentioned above.

Phantom's Compliance Stance

Kevin Jacobs, Phantom's General Counsel, addressed these limitations. He stated that the company views the Commodity Futures Trading Commission (CFTC) as having clear jurisdiction over such prediction market products. Phantom's approach is to operate within this federal framework while proactively adhering to existing state-level regulations, which necessitated the state-by-state restrictions. This strategy seeks to balance innovation with compliance for long-term viability.