TL;DR
- Federal momentum: HPC and Multicoin Capital are backing the CFTC’s new prediction markets framework, filing a joint comment that calls for clear national standards.
- Regulatory clarity: The Proposal outlines how the Commission will decide when an event‑based contract can be blocked.
- Industry alignment: HPC and Multicoin urge settlement‑based interpretations, published reasoning for all reviews, and uniform rules that support responsible growth of onchain markets.
HPC and Multicoin Capital are throwing their support behind the CFTC’s proposed framework for prediction markets, filing a joint comment that urges the agency to lock in clear federal standards as trading activity accelerates and regulatory pressure intensifies across several states. Their backing comes at a moment when prediction markets have reached serious scale, with major venues reporting rapid growth and state regulators attempting to classify event‑based contracts as gambling products, creating uncertainty the Proposal aims to resolve.
A Federal Rulebook Arrives at a Critical Moment
The CFTC is drafting the regulatory framework these markets have earned. Earlier this year, the agency issued an advance notice seeking public input on how prediction markets should be governed. Its Proposal tackles a central question: when should a contract be kept off a regulated exchange? Under existing statute, the Commission can review an event contract that involves listed activities such as war or gaming and block it if the contract is contrary to the public interest. The Proposal outlines how that authority will be applied. This comes as some states attempt to regulate prediction markets under gambling laws, challenging them in court and stretching the Commission’s current review framework beyond what the statute supports.
HPC and Multicoin Support Clear, Uniform Standards
HPC and Multicoin Capital submitted a joint comment backing the Proposal. HPC and Multicoin argue that clear rules beat guesswork, noting that written standards give builders confidence to invest. HPC and Multicoin also emphasize that prediction markets should answer to one federal regulator. They point out that exchange‑traded contracts differ structurally from gambling wagers, and Congress placed authority with the CFTC in 2010 to avoid a fragmented, fifty‑state regime. HPC and Multicoin further recommend refinements: adopting a settlement‑based reading of “involve,” adding examples for edge cases, and publishing reasoning for both blocked and allowed contracts.
A Growing Onchain Market Needs National Clarity
Hyperliquid already supports outcome‑based contracts, with open interest hitting all‑time highs since launching in May. Clear, technology‑neutral federal rules would let markets like these grow under a unified national framework. The principles at stake mirror those advocated across onchain derivatives: standards written in advance and reasoning published for all participants.
