Hyperliquid Policy Center and Multicoin Capital support the Commodity Futures Trading Commission’s proposed prediction-market framework. They advocate for clear federal standards for regulated prediction market contracts, settlement terms to determine contract legitimacy, and published reasoning for CFTC decisions on event contracts. They argue written federal standards would help operators design contracts and reduce policy swings. The proposal aims to clarify how the CFTC reviews contracts tied to gaming, war, terrorism, and conduct that violates federal or state law. The joint filing supports the CFTC’s proposal for amendments to Regulation 40.11, emphasizing the need for clear rules and one federal regulator for exchange-traded prediction contracts. The groups also seek settlement-based tests and public reasons for CFTC decisions on contracts. The filing presents an industry position and does not resolve current legal disputes. They argue for technology-neutral rules and highlight significant market growth in the prediction markets sector. The CFTC will review the comments to decide on the proposal, addressing questions about decentralized access, state authority, and registration for prediction market contracts.
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