HPC and Multicoin Support CFTC Prediction Market Regulatory Framework, Advocate for Unified CFTC Oversight of Prediction Markets

July 27th, the Hyperliquid Policy Center (HPC) revealed that it has jointly submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC) with Multicoin Capital, supporting its proposed prediction market regulatory framework.

Both parties stated that prediction markets should be uniformly regulated by the CFTC as the sole federal regulatory agency, rather than being separately governed by individual states based on gambling regulations, to avoid market fragmentation. HPC and Multicoin believe that event contracts based on trading platform matchings are fundamentally different from traditional gambling and should be included in the financial market regulatory system.

The comment letter suggested that the CFTC should further clarify the event contract review standards, including adopting a settlement-based criteria and publicly disclosing the specific reasons for each review decision to enhance regulatory transparency and provide market participants with stable expectations.

Hyperliquid stated that its platform has already supported on-chain contract settlement trading, and the related market has experienced rapid growth since its launch in May, with the open interest recently hitting a record high. All positions are collateralized and settled on-chain. Both parties believe that a clear and technologically neutral federal regulatory framework will promote the compliant development of on-chain prediction markets and derivative markets.