diff --git a/src/commands.rs b/src/commands.rs
index 62a6a2d..54cddf0 100644
--- a/src/commands.rs
+++ b/src/commands.rs
@@ -52,7 +52,7 @@ pub struct CliOpts {
     #[arg(env = "DATADIR", short = 'd', long = "datadir")]
     pub datadir: Option<std::path::PathBuf>,
     /// Output results in pretty format (instead of JSON).
-    #[arg(long = "pretty")]
+    #[arg(long = "pretty", global = true)]
     pub pretty: bool,
     /// Top level cli sub-commands.
     #[command(subcommand)]
diff --git a/src/handlers.rs b/src/handlers.rs
index 941c550..d9d2cbe 100644
--- a/src/handlers.rs
+++ b/src/handlers.rs
@@ -1093,9 +1093,8 @@ pub(crate) async fn handle_command(cli_opts: CliOpts) -> Result<String, Error> {
                     }
                 };
 
-                let mut wallet = new_persisted_wallet(network, &mut persister, &wallet_opts)?;
-                let blockchain_client =
-                    new_blockchain_client(&wallet_opts, &wallet, database_path)?;
+                let mut wallet = new_persisted_wallet(network, &mut persister, wallet_opts)?;
+                let blockchain_client = new_blockchain_client(wallet_opts, &wallet, database_path)?;
 
                 let result = handle_online_wallet_subcommand(
                     &mut wallet,
@@ -1108,10 +1107,10 @@ pub(crate) async fn handle_command(cli_opts: CliOpts) -> Result<String, Error> {
             };
             #[cfg(not(any(feature = "sqlite", feature = "redb")))]
             let result = {
-                let wallet = new_wallet(network, &wallet_opts)?;
+                let wallet = new_wallet(network, wallet_opts)?;
                 let blockchain_client =
-                    crate::utils::new_blockchain_client(&wallet_opts, &wallet, database_path)?;
-                let mut wallet = new_wallet(network, &wallet_opts)?;
+                    crate::utils::new_blockchain_client(wallet_opts, &wallet, database_path)?;
+                let mut wallet = new_wallet(network, wallet_opts)?;
                 handle_online_wallet_subcommand(&mut wallet, blockchain_client, online_subcommand)
                     .await?
             };
@@ -1162,10 +1161,10 @@ pub(crate) async fn handle_command(cli_opts: CliOpts) -> Result<String, Error> {
             };
             #[cfg(not(any(feature = "sqlite", feature = "redb")))]
             let result = {
-                let mut wallet = new_wallet(network, &wallet_opts)?;
+                let mut wallet = new_wallet(network, wallet_opts)?;
                 handle_offline_wallet_subcommand(
                     &mut wallet,
-                    &wallet_opts,
+                    wallet_opts,
                     &cli_opts,
                     offline_subcommand.clone(),
                 )?
diff --git a/tests/cli_flags.rs b/tests/cli_flags.rs
new file mode 100644
index 0000000..beec798
--- /dev/null
+++ b/tests/cli_flags.rs
@@ -0,0 +1,46 @@
+// Copyright (c) 2020-2025 Bitcoin Dev Kit Developers
+//
+// This file is licensed under the Apache License, Version 2.0 <LICENSE-APACHE
+// or http://www.apache.org/licenses/LICENSE-2.0> or the MIT license
+// <LICENSE-MIT or http://opensource.org/licenses/MIT>, at your option.
+// You may not use this file except in accordance with one or both of these
+// licenses.
+
+//! CLI Flags Tests
+//!
+//! Tests for global CLI flags and their behavior
+
+use std::process::Command;
+
+#[test]
+fn test_without_pretty_flag() {
+    let output = Command::new("cargo")
+        .args("run -- key generate".split_whitespace())
+        .output()
+        .unwrap();
+
+    assert!(output.status.success());
+
+    let stdout = String::from_utf8_lossy(&output.stdout);
+    assert!(serde_json::from_str::<serde_json::Value>(&stdout).is_ok());
+}
+
+#[test]
+fn test_pretty_flag_before_subcommand() {
+    let output = Command::new("cargo")
+        .args("run -- --pretty key generate".split_whitespace())
+        .output()
+        .unwrap();
+
+    assert!(output.status.success());
+}
+
+#[test]
+fn test_pretty_flag_after_subcommand() {
+    let output = Command::new("cargo")
+        .args("run -- key generate --pretty".split_whitespace())
+        .output()
+        .unwrap();
+
+    assert!(output.status.success());
+}