Hyperliquid and Multicoin Capital filed joint comments with the CFTC requesting clearer prediction market regulations and settlement guidelines for on-chain event contracts.
DeFi & Yields ·
The Hyperliquid Policy Center and Multicoin Capital filed a joint comment with the CFTC on July 27th supporting the agency's proposed prediction market framework while requesting specific regulatory clarifications. The filing backs federal jurisdiction over prediction markets but presses for two substantive changes to how on-chain event contracts are assessed and approved under the CFTC's new 90-day review process for contracts involving gaming, war, terrorism, assassination, and other listed activities.
The group's first request centers on settlement as the regulatory test rather than the act of trading itself. They argue that a contract should fall within special review rules only when its payout directly depends on illegal activity, not merely because purchasing it resembles placing a wager. They also asked for clearer examples to help exchanges and developers understand regulatory exposure before committing resources to launch products, particularly for edge cases involving multiple settlement paths or indirect references to sensitive activities.
The second recommendation addresses post-review transparency. The filing notes that approvals—including those by inaction—reveal as much about regulatory boundaries as prohibitions do. Without public reasoning behind approvals, other platforms may duplicate legal work or unnecessarily avoid permissible products. Whether the CFTC will adopt these changes remains open, though the submission signals ongoing dialogue between regulators and industry participants on prediction market oversight.