A regulatory shift in the US is opening a new route from self-custody wallets to derivatives markets. By March 2026, Phantom users can already access Kalshi-powered prediction contracts inside the wallet, while earlier CFTC actions in 2025 and 2026 removed or softened several barriers around digital-asset collateral and clearing. The result is not a blanket deregulation of crypto derivatives, but a narrower and important change: regulated derivatives access is moving closer to the wallet interface.
That matters because crypto users have historically faced a split market structure. Self-custody wallets gave direct control over assets, but regulated derivatives usually required a separate broker, futures commission merchant, or centralized exchange workflow. New CFTC no-action relief, withdrawn legacy guidance, and coordination with the SEC are reducing some of that friction, even as jurisdiction limits, product restrictions, and compliance checks remain in place.
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The key change is access, not a free-for-all.
Phantom says users can trade Kalshi-powered prediction markets directly in the wallet without opening a Kalshi account, but availability still depends on jurisdiction and compliance rules, according to Phantom’s help documentation updated March 4, 2026.
Regulatory steps that reduced wallet-to-derivatives friction
| Date | Action | Why it matters |
|---|---|---|
| March 28, 2025 | CFTC withdrew Staff Advisory 23-07 | Removed special clearing caution that treated digital-asset derivatives differently |
| July 21, 2025 | Coinbase launched CFTC-regulated perpetual futures for US customers | Showed regulated crypto derivatives could reach US retail through compliant rails |
| February 6, 2026 | CFTC Letter 26-05 no-action relief on digital-asset collateral | Let FCMs accept certain non-security digital assets and payment stablecoins as customer margin collateral, subject to conditions |
| March 4, 2026 | Phantom help center updated prediction-market trading guide | Confirmed in-wallet access to Kalshi-powered event contracts without a separate Kalshi account |
| March 11, 2026 | CFTC-SEC MOU announced | Signaled more coordinated oversight for lawful crypto innovation |
Source: CFTC, Coinbase, Phantom | Accessed March 21, 2026 UTC
March 2026 in wallets: What users can access now?
As of Phantom’s March 4, 2026 documentation update, users can trade prediction markets on sports, politics, crypto, and culture from inside the wallet. Phantom states the markets are powered by Kalshi via DFlow, and that users do not need a Kalshi account to open positions, cash out, or claim payouts directly in Phantom. Contracts are priced from $0 to $1, reflecting implied probability, and settle at $1 if the prediction is correct and $0 if it is not.
That is a concrete example of direct wallet access to a regulated derivatives-like product flow, though it is narrower than full-spectrum crypto futures. Phantom also says some markets may no longer be available through its interface due to compliance requirements, and access depends on the user being in an eligible jurisdiction. In other words, the wallet has become a front end to regulated market infrastructure, but not an unrestricted derivatives venue.
Timeline of the policy shift
March 28, 2025: The CFTC withdrew Staff Advisory 23-07, saying digital-asset derivatives should not receive different regulatory treatment from other products.
July 21, 2025: Coinbase said US customers could trade CFTC-regulated perpetual futures through Coinbase Financial Markets, initially with nano bitcoin and nano ether contracts.
February 6, 2026: CFTC Letter 26-05 gave no-action relief for FCMs to accept certain digital assets and payment stablecoins as customer margin collateral under specified controls.
March 11, 2026: The CFTC and SEC announced an MOU to coordinate on lawful innovation, market integrity, and investor protection.
How February 6 no-action relief changed the plumbing
The most important regulatory document for the “red tape ripped away” framing is CFTC Letter 26-05, issued February 6, 2026. The letter says staff will not recommend enforcement action against an FCM that accepts payment stablecoins and other non-security digital assets as customer margin collateral and takes their value into account for margin purposes, provided the firm follows detailed conditions. Those conditions include notices to the CFTC, reporting, operational controls, haircut rules, and prompt reporting of significant system or cybersecurity incidents during the first three months of reliance.
The letter does not authorize every wallet to offer derivatives. It does something more technical and arguably more important: it modernizes collateral handling for regulated intermediaries. On page 12 and later sections, the CFTC letter frames the change as clarification and modernization of outdated rules governing customer collateral. It also states that the no-action position expires once the Commission adopts a broader action on digital-asset collateral, including any implementation tied to the GENIUS Act framework.
For market structure, that means regulated derivatives access can become more crypto-native. If collateral can remain in digital-asset form under compliant conditions, the distance between wallet-held assets and regulated trading venues narrows. That does not eliminate intermediaries, but it reduces conversion steps, settlement friction, and some of the operational mismatch between 24/7 crypto markets and traditional futures infrastructure. This is an inference drawn from the CFTC letter’s collateral mechanics and Coinbase’s regulated product rollout.
Wallet access vs regulated derivatives access
| Feature | Phantom prediction markets | Coinbase US perpetual futures |
|---|---|---|
| Access point | Inside wallet interface | Coinbase Financial Markets |
| Separate account required | Phantom says no Kalshi account required | Brokered through Coinbase’s regulated entity |
| Product type | Event contracts priced $0-$1 | Nano BTC and ETH perpetual futures at launch |
| US regulatory anchor | Kalshi-linked market access with compliance limits | CFTC-regulated perpetual futures |
| Main constraint | Jurisdiction and market availability | Eligibility, futures risk, venue rules |
Source: Phantom help center, Coinbase blog | Accessed March 21, 2026 UTC
Why March 28, 2025 still matters for 2026 access
One earlier CFTC move set the tone. On March 28, 2025, the agency withdrew Staff Advisory 23-07, which had focused on risks tied to expansion of digital-asset clearing. The CFTC said the withdrawal was intended to ensure its regulatory treatment of digital-asset derivatives would not vary from treatment of other products. That language matters because it signaled a shift away from crypto-specific caution in clearing policy.
By comparison, the February 2026 no-action letter moved from principle to implementation. It addressed how FCMs can handle digital-asset collateral in segregated customer accounts. Then the March 11, 2026 CFTC-SEC memorandum added an interagency coordination layer, with both agencies saying frameworks must evolve and modernize to support lawful innovation while protecting market integrity and customers.
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Not all derivatives are now open inside wallets.
The verified March 2026 example is Phantom’s access to Kalshi-powered prediction markets. Broader crypto futures access in the US still runs through regulated venues and intermediaries such as Coinbase Financial Markets.
2 paths are emerging as wallets test regulated market rails
The first path is the embedded-interface model. In this setup, the wallet becomes the user-facing layer while a regulated venue or partner handles the market infrastructure. Phantom’s Kalshi-powered prediction markets fit that pattern. The second path is the regulated-broker model, where a crypto platform with licensed entities offers derivatives directly, as Coinbase did with US perpetual futures starting July 21, 2025.
What links the two is policy normalization. The CFTC’s 2025 withdrawal of special clearing guidance, the 2026 collateral no-action relief, and the March 2026 SEC-CFTC coordination agreement all point in the same direction: crypto-linked derivatives are being folded more deeply into existing US market rules rather than handled as a separate exception. That does not remove legal boundaries around securities, customer protection, or state and federal compliance. It does, though, make wallet-based access more plausible than it was a year earlier.
Frequently Asked Questions
Frequently Asked Questions
Can US crypto wallets now offer derivatives directly?
Some can provide access to specific products through regulated partners, but not without limits. Phantom says users can trade Kalshi-powered prediction markets directly in the wallet without a Kalshi account, as of its March 4, 2026 help update. That is not the same as unrestricted access to all futures or swaps.
What exactly did the CFTC change on February 6, 2026?
CFTC Letter 26-05 gave no-action relief allowing FCMs, under conditions, to accept payment stablecoins and other non-security digital assets as customer margin collateral and count that value for margin purposes. The letter includes reporting, haircut, notice, and incident-disclosure requirements, and it is not a blanket rule rewrite.
Does this mean self-custody wallets can bypass brokers and compliance?
No. Phantom’s documentation says access depends on jurisdiction and compliance requirements, and some markets may be unavailable through the interface. The broader US framework still relies on regulated entities, product restrictions, and customer-protection rules.
How is this different from Coinbase’s US perpetual futures launch?
Coinbase said US customers could trade CFTC-regulated perpetual futures through Coinbase Financial Markets starting July 21, 2025, initially with nano bitcoin and nano ether contracts. That is a regulated brokered offering, while Phantom’s March 2026 example is embedded wallet access to Kalshi-powered event contracts.
Why do analysts say old red tape was removed?
The phrase refers to several steps: the CFTC’s March 28, 2025 withdrawal of special digital-asset clearing guidance, the February 6, 2026 collateral no-action relief, and the March 11, 2026 SEC-CFTC coordination agreement. Together, those actions reduce some crypto-specific friction in regulated derivatives access.
Conclusion
The verified story is narrower than the headline language suggests, but still significant. US regulators have not thrown open every derivatives gate to every wallet. What they have done, across 2025 and early 2026, is remove several policy bottlenecks that kept digital assets, self-custody interfaces, and regulated derivatives markets farther apart. Phantom’s in-wallet prediction markets and Coinbase’s regulated US perpetual futures show the two clearest live examples. The next phase will depend on whether temporary no-action relief turns into permanent rulemaking and whether more wallets connect to regulated market rails under the same compliance-first model.
Disclaimer: This article is for informational purposes only and does not constitute legal or compliance advice. Cryptocurrency regulations vary by jurisdiction. Always consult with a qualified legal professional regarding regulatory matters.
