[DigitalToday reporter Chi-gyu Hwang] Crypto wallet company Phantom is offering U.S. users Kalshi’s prediction market service, The Block reported on Oct. 23. Users can trade contracts that bet on event outcomes directly in the Phantom app.

The service begins on Oct. 23 and will expand over several weeks, the report said. Phantom users must complete Kalshi’s know-your-customer (KYC) procedures to use the service. Users pay trading funds with Phantom’s dollar-linked stablecoin Cash (CASH).

The funds are then transferred to Kalshi, converted into fiat currency and settled.

The launch comes as U.S. states are engaged in legal disputes with Kalshi. Kalshi argues it is not subject to state gambling laws because it is under federal supervision, and multiple states are opposing that position.

Against that backdrop, Kevin Jacobs (케빈 제이콥스), Phantom’s head of legal, said: "The U.S. Commodity Futures Trading Commission's (CFTC) jurisdiction is clear," expressing confidence in pushing ahead with the business.

In March, the CFTC sent Phantom a conditional no-action letter, exempting it from broker registration requirements. Last month, it expanded the exemption to other software companies. Jacobs' position is that the company will comply with state-by-state regulations while litigation proceeds.

In Michigan, it blocks sports markets, and in Nevada it blocks sports, elections, politics and entertainment markets. In Washington, it additionally blocks culture, science and technology, and geopolitics. These restrictions could change depending on the outcome of lawsuits.