Hyperliquid and Multicoin Push CFTC Toward One Prediction Market Rulebook

The Hyperliquid Policy Center (HPC) 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 two changes that could affect how on-chain event contracts are designed and approved.

The filing responds to the CFTC’s “Prediction Markets; Public Interest Determinations” proposal published in June. It aims to amend Regulation 40.11 and establish a 90-day process for reviewing event contracts that may involve gaming, war, terrorism, assassination, or other activities listed in the Commodity Exchange Act.

HPC and Multicoin called the plan a “clear and well-reasoned framework.” They argued that prediction markets belong under the CFTC’s exclusive federal jurisdiction. The letter states that regulating prediction markets on a state level, creating “fifty separate state regimes,” would fragment national derivatives markets.

Prediction markets topped $50 billion in trading volume last month, and the biggest names in traditional finance are moving in. Today, with @multicoin, we filed a joint comment supporting the @CFTC’s proposed prediction markets framework. These markets have grown up. The… https://t.co/pYG4mevmbT — Hyperliquid Policy Center (@HyperliquidPC) July 27, 2026

The first concern involves the use of the word “involve” in the Commodity Exchange Act. Under the statute, the CFTC can review contracts that involve certain listed activities and prohibit them when contrary to the public interest. The letter supports an interpretation focused on settlement: regulators would examine the event determining the payout, not trading itself. A contract would fall under the special rule when settlement directly turns on illegal activity.

The group also asked for more examples. Edge cases may include contracts with several potential settlement paths or products that reference sensitive activities indirectly. Clear illustrations would help exchanges assess regulatory exposure before committing resources.

The second recommendation concerns post-review transparency. Under the current proposal, the CFTC would publish written findings when it blocks a contract. HPC and Multicoin argue that approvals, including by inaction, can reveal regulatory boundaries as much as prohibitions. Without public reasoning, other platforms may repeat legal work or avoid permissible products.

In any case, it’s interesting to follow developments surrounding the letter and whether the CFTC will adopt the two requested changes. This could signal that regulators are actively listening to industry experts and attempting to legislate fairly.

Source: https://cryptopotato.com/hyperliquid-and-multicoin-push-cftc-toward-one-prediction-market-rulebook/