The U.S. Commodity Futures Trading Commission is drafting rules for prediction markets, and Hyperliquid Policy Center and Multicoin Capital have filed a joint comment in support of a more explicit federal framework. Their submission calls for clear standards to be written directly into the regulatory text so oversight does not swing back and forth with changes in administration. The two groups also argue that prediction markets should fall under the CFTC at the federal level rather than being treated by individual states as gambling products. In addition, they urge the regulator to use the settlement reference of a contract to determine whether it touches sensitive areas such as war or gaming, and to publish full reasoning at the end of the review process regardless of whether a contract is approved or rejected. The filing comes as the CFTC works on a formal regulatory structure for the sector.
The U.S. Commodity Futures Trading Commission (CFTC) is drafting rules for prediction markets, and Hyperliquid Policy Center and Multicoin Capital have submitted a joint comment supporting the inclusion of clear standards in the regulatory text.
According to the submission, writing those standards directly into the rules would help prevent regulatory reversals tied to changes in administration.
The two groups also said prediction markets should be regulated uniformly by the CFTC at the federal level, rather than being handled by individual states under gambling rules.
They also proposed that the CFTC adopt an interpretation that looks to a contract’s settlement reference to decide whether it involves sensitive areas such as war or gaming. They added that once a review is complete, the agency should publish its full reasoning whether a contract is approved or rejected.
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