Phantom rolls out Kalshi prediction markets to US users amid state lawsuits

Phantom launched a staged rollout of Kalshi-powered prediction markets for its U.S. mobile wallet users on October 23, 2026, charging $0.02 per contract. The integration exposes Kalshi to Phantom's estimated 20 million users as Kalshi faces lawsuits from state officials in Michigan, Utah, Nevada, and Washington over gambling laws. Phantom operates under CFTC no-action relief granted in March 2026, even as prediction market trading volume on 2026 U.S. midterms exceeds $1.4 billion.

Phantom rollout of Kalshi integration

• ▪Phantom launched a staged rollout of Kalshi prediction markets to eligible U.S. mobile wallet users on October 23, 2026.
• ▪The Kalshi integration exposes prediction markets directly to Phantom's estimated user base of 20 million wallet users.

Account setup and trading mechanics

• ▪Trading Kalshi contracts in Phantom costs $0.02 per contract, split as a $0.01 platform fee to Phantom and a $0.01 fee to Kalshi, plus network fees.
• ▪Phantom users can fund Kalshi trades using Phantom's CASH stablecoin balance or supported Solana tokens, with winning proceeds returning to Cash via Stripe.
• ▪User funds traded on Kalshi through Phantom are kept separate from main Phantom wallet balances and are held in custody by Kalshi.
• ▪Phantom users in the United States must create or link a Kalshi account and complete identity verification checks including government identification before trading.

Phantom trading warnings

• ▪Phantom warned users not to burn the Solana SPL tokens representing their prediction positions through token-cleanup tools, stating that burned tokens cannot be recovered.
• ▪Phantom warned users that limited buyer demand on Kalshi markets may leave users unable to sell open positions before market settlement.

CFTC no-action relief for wallet providers

• ▪CFTC no-action relief requires Phantom users to sign up as direct members of Kalshi and maintain independent access to the exchange outside Phantom.
• ▪CFTC staff issued Staff Letter 26-09 on March 17, 2026, granting Phantom conditional no-action relief from registering as an introducing broker.
• ▪The CFTC extended conditional broker-registration no-action relief similar to Phantom's model to other wallet software providers in September 2026.
• ▪Phantom General Counsel Kevin Jacobs stated that Phantom specifically sought its CFTC no-action relief to launch its Kalshi prediction market integration.

State legal challenges against Kalshi

• ▪Phantom restricts access to specific Kalshi prediction markets for users in Michigan, Nevada, and Washington due to active state legal challenges.
• ▪New Jersey officials petitioned the U.S. Supreme Court to review a Third Circuit ruling that favored Kalshi on whether state gambling laws apply to event contracts.
• ▪Utah Attorney General Derek Brown sued Kalshi on October 20, 2026, alleging illegal gambling and seeking recovery of between $30.6 million and $61.2 million in fees.
• ▪Michigan Attorney General Dana Nessel secured a preliminary injunction on September 2, 2026, requiring Kalshi to geofence sports contracts under a daily fine.

Phantom prediction market timeline

• ▪Phantom announced plans to shift its prediction market infrastructure away from Kalshi's backend after June 2026 to enable automatic on-chain settlements.
• ▪Phantom officially announced its prediction market integration with Kalshi in December 2025.

Kalshi prediction market trading volumes

• ▪Kalshi accumulated over $291 billion in total trading volume in 2026, reaching $55.33 billion in trading volume during October 2026 by October 22.
• ▪Trading volume on 2026 U.S. midterm election prediction markets surpassed $1.4 billion across platforms, with Kalshi reaching nearly $1.1 billion and Polymarket exceeding $340 million.