Hyperliquid and Multicoin Lobby for Prediction Market Rules

Hyperliquid Policy Center and Multicoin Capital recently filed a joint comment with the Commodity Futures Trading Commission regarding its new proposal for prediction markets. While the groups support the agency's effort to create a standard federal framework, they are asking for two specific adjustments to how event contracts are evaluated.

The firms argue that the CFTC should focus on how contracts settle rather than the act of trading itself. They want regulators to clarify that only contracts based directly on prohibited activities should face restrictions. Additionally, the group asked for more specific examples of edge cases so developers can better understand which products might trigger regulatory pushback.

A major concern for these firms is the potential for inconsistent state laws. They suggest that forcing prediction markets into fifty different state regimes would damage the national derivatives market. Instead, they urge the CFTC to maintain exclusive federal jurisdiction to keep the industry growth stable and consistent.

Finally, the letter calls for more transparency when the agency approves contracts. The firms suggest that understanding why a contract is permitted is just as important as knowing why one is blocked. If the CFTC adopts these changes, it could provide much needed clarity for exchanges looking to build new, compliant products in the growing prediction space.