--- title: "Phantom Integrates Kalshi to Offer Regulated Prediction Markets to US Users" description: "The self-custody wallet is deploying event contract trading nationwide following CFTC no-action relief granted to non-custodial software interfaces." url: https://basisdesk.news/news/phantom-kalshi-prediction-markets-us-cftc-relief published: 2026-10-24T02:12:06.926Z modified: 2026-10-24T02:12:06.926Z section: DeFi author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [BTC, ETH] tags: [phantom, kalshi, cftc, prediction-markets, regulation, self-custody] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Phantom Integrates Kalshi to Offer Regulated Prediction Markets to US Users The self-custody wallet is deploying event contract trading nationwide following CFTC no-action relief granted to non-custodial software interfaces. ## At a glance - **What happened:** Phantom began rolling out prediction market trading to US users via an integration with CFTC-registered exchange Kalshi. - **Why it matters:** The deployment operationalizes CFTC no-action relief that permits non-custodial interfaces to offer access to regulated trading venues without broker registration. - **Who is affected:** US Phantom wallet users and CFTC-regulated derivatives platforms. - **What's next:** Rollout of prediction market access will expand across US users over the next few weeks. - **Status:** in-effect - **Primary source:** [Phantom Puts Its CFTC No-Action Relief to Work, Bringing Prediction Markets to US Users](https://phantom.com/learn/blog/phantom-puts-its-cftc-no-action-relief-to-work-bringing-prediction-markets-to-us-users) — phantom.com ## Key points - Phantom began rolling out prediction markets to US users via CFTC-registered exchange Kalshi, with nationwide access expanding over the next few weeks [1]. - CFTC staff issued Staff Letter 26-09 in March granting Phantom introducing broker no-action relief, which was expanded industry-wide in September [1]. - A third-party service handles identity data while Kalshi approves accounts, holds user balances, and executes trades submitted via Phantom [1]. ## Editorial remark - **Context:** Non-custodial interfaces historically faced legal uncertainty under CFTC introducing broker rules when surfacing regulated derivatives products directly to US-based retail users. - **Impact:** US self-custody wallet users gain direct access to CFTC-regulated prediction markets without leaving their primary interface, while setting an operational blueprint for non-custodial front ends. - **Watch:** Expansion of prediction market access across Phantom's US user base over the coming weeks and potential implementations by competing wallet providers under the CFTC's September framework. Non-custodial crypto wallet Phantom has begun rolling out prediction markets to US users through an integration with Kalshi, a platform registered with the Commodity Futures Trading Commission [1]. Access is slated to expand across the United States over the next few weeks [1]. The product relies on regulatory relief secured earlier in the year [1]. Phantom stated that much of the CFTC's traditional introducing broker framework was unsuitable for a non-custodial front-end interface [1]. In response to an inquiry on whether passive software could connect individuals to a registered exchange without registering as an introducing broker, CFTC staff issued Staff Letter 26-09 in March [1]. The letter established no-action relief confirming that Phantom is not required to register as an introducing broker to offer access to regulated markets, subject to specific conditions [1]. The CFTC subsequently extended this no-action relief industry-wide in September under matching terms to similarly situated software providers [1]. ## Architecture and Execution Under the integration architecture, US users complete identity verification and submit event contract trades directly inside the Phantom interface [1]. A third-party service collects and stores user identification information, while KalshiEX LLC approves trading accounts, maintains them, and executes all submitted orders [1]. Phantom remains an unregistered entity with the CFTC and operates solely as a passive software provider [1]. The initiative comes as decentralized application interfaces seek regulatory pathways to offer regulated derivatives alongside decentralized protocols, similar to models explored across the broader sector [PredictArena Launches Prediction Market Platform With Crypto.com Derivatives Unit](https://basisdesk.news/news/predictarena-launches-prediction-market-crypto-com-derivatives). At the time of writing, broader digital asset markets traded flat, with $BTC at $80,840 and $ETH at $2,381. Phantom stated it plans to continue engaging with regulators to maintain access pathways for non-custodial software applications [1]. ## FAQ **Is Phantom registered with the CFTC?** No. Phantom operates as an unregistered non-custodial software provider under CFTC Staff Letter 26-09 no-action relief, with trades executed by CFTC-registered exchange KalshiEX LLC. **Who holds user funds and executes trades?** Kalshi approves and maintains user trading accounts and executes orders submitted through Phantom, while an independent third party manages identity verification data. ## Sources 1. [Phantom Puts Its CFTC No-Action Relief to Work, Bringing Prediction Markets to US Users](https://phantom.com/learn/blog/phantom-puts-its-cftc-no-action-relief-to-work-bringing-prediction-markets-to-us-users) — phantom.com, 2026-10-23 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai