Multicoin Capital and Hyperliquid Join Forces to Back CFTC Prediction Market Framework
Multicoin Capital has partnered with Hyperliquid to support the US Commodity Futures Trading Commission's (CFTC) proposed framework for regulating prediction markets. In a joint comment letter, they advocate for the CFTC to be the sole federal regulator of these contracts, using the Commodity Exchange Act as its authority.
The letter argues that prediction markets should fall under exclusive federal oversight, rather than being subject to patchwork state regulations and jurisdictional turf wars. It also suggests that regulators use a 'settlement-based assessment' to determine what activities these contracts involve, rather than looking at the underlying topic they reference.
Hypothetically, if the CFTC adopts this framework, it could be a significant tailwind for platforms like Hyperliquid that have already designed their products around full collateralization and decentralized settlement. However, it also risks forcing protocols to centralize key functions or exit the US market entirely.
The partnership between Multicoin Capital and Hyperliquid is notable given that Kyle Samani, who co-founded Multicoin Capital and left in early February 2026, has publicly criticized Hyperliquid. Multicoin reportedly holds over $40 million in HYPE tokens.