Multicoin and Hyperliquid Back CFTC's Proposed Prediction Market Regulation

Multicoin Capital and Hyperliquid are backing the CFTC's proposed Regulation 40.11 to regulate prediction markets exclusively under federal oversight via the Commodity Exchange Act.

The proposed regulation aims to avoid inconsistent state rules, assessment based on contract settlement rather than underlying topics, and transparency in regulatory decisions.

Prediction markets have exceeded $50 billion in monthly volume, highlighting the need for clear rules. Hyperliquid's fully collateralized, decentralized contracts align well with the proposed framework, though registration requirements could challenge some protocols.