Multicoin and Hyperliquid Lobby for Single Federal Regulator in Prediction Market Framework

Multicoin Capital and Hyperliquid Policy Center have filed a joint comment letter to the CFTC in support of its proposed framework for regulating prediction markets. The filing, submitted on July 27, argues that the CFTC should be the sole federal regulator for these contracts, using the Commodity Exchange Act as its basis.

The joint comment targets Regulation 40.11, a framework designed to bring order to the prediction market Wild West. Multicoin and Hyperliquid argue that prediction markets should fall under exclusive federal oversight, rather than being subject to a patchwork of state regulations or jurisdictional turf wars.

They also advocate for the CFTC to use a 'settlement-based assessment' to determine what activities these contracts actually involve, rather than relying on the underlying topic they reference. This approach would judge contracts based on how they resolve and pay out, not by their subject matter.

The joint comment also recommends that the CFTC publicly disclose its decision-making processes when evaluating these markets.