Cryptocurrency wallet provider Phantom has, through integration with Kalshi, launched a prediction market for eligible US users, allowing them to trade contracts related to cryptocurrency prices, sports, and other real-world events directly within the application.

According to the announcement on Wednesday, this integration provides event contracts that are regulated by the U.S. Commodity Futures Trading Commission (CFTC), including a short-term Bitcoin price market that settles every 15 minutes. Transactions can be funded using Phantom Cash balances, with the pricing unit being CASH stablecoins.

Kalshi is responsible for customer verification, account management, and transaction execution, while Phantom provides access through its application. This launch follows the "no action" relief granted by CFTC in March, which allowed Phantom to connect users to regulated markets without registering as an introducing broker, provided that specific conditions were met.

This service is being gradually rolled out through the new Predict tab within Phantom. The specific availability varies by state and market category. Eligible US users can first view real-time market data, sports scores, and market discussions, and then place orders through an interface similar to that of cryptocurrency token exchanges.

The legal disputes surrounding Kalshi continue, yet the trading volume is on the rise.

As Phantom enters the prediction market, legal disputes in this industry in the United States are also intensifying. On Monday, the Commodity Futures Trading Commission sued Utah, after the state challenged the event contracts of Kalshi based on its own gambling laws, which further added to a series of cases surrounding whether federal derivatives regulation takes precedence over state gambling laws.

Despite the ongoing legal uncertainties, transaction activity continues to grow. According to data compiled by DeFi Rate, within a 30-day period ending on October 27th, the trading volume of Kalshi's crypto contracts reached 10.8 billion US dollars, representing a 19.6% increase from the previous period.

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