The Hyperliquid Policy Center and Multicoin Capital submitted a joint comment to the CFTC on July 27th, supporting a proposed prediction market framework while requesting two key changes. The filing backs federal oversight but asks the agency to clarify settlement tests and publish its reasoning after every contract review. The recommendations focus on how on-chain event contracts are designed and approved under Regulation 40.11.
The Hyperliquid Policy Center and Multicoin Capital submitted a joint comment to the US Commodity Futures Trading Commission (CFTC) on July 27th. They expressed support for the agency’s proposed prediction market framework but pressed for changes affecting on-chain event contract design.
The filing responds to the CFTC’s “Prediction Markets; Public Interest Determinations” proposal published in June. It aims to establish a 90-day review process for event contracts involving gaming, war, or terrorism listed in the Commodity Exchange Act.
HPC and Multicoin called the plan a “clear and well-reasoned framework.” They argued prediction markets belong under the CFTC’s exclusive federal jurisdiction, stating that state-level regulation would “fragment national derivatives markets.”
The first concern involves the word “involve” in the Commodity Exchange Act. The letter supports an interpretation focused on settlement, where a contract falls under the special rule when settlement directly turns on illegal activity.
The group asked for more examples of edge cases. Clear illustrations would help exchanges assess regulatory exposure before committing resources to a launch.
The second recommendation concerns post-review transparency. Under the current proposal, the CFTC would publish findings only when blocking a contract.
HPC and Multicoin argue this creates an information gap, as approvals reveal regulatory boundaries. Without public reasoning, other platforms may repeat legal work or avoid permissible products.
