Hyperliquid Policy Center writes to CFTC: Compliance channels should be opened for decentralized prediction markets

Odaily reports that Hyperliquid Policy Center (HPC) has officially submitted a comment letter regarding the US Commodity Futures Trading Commission’s (CFTC) advance notice of proposed rulemaking (ANPRM) on prediction markets. The letter advocates for a clear compliance path for decentralized prediction markets based on public, permissionless blockchains while refining the regulatory framework for centralized prediction markets.

In its comment letter, HPC urges the CFTC to adopt more flexible, function-oriented rules to accommodate decentralized market structures; to establish clear legal channels for US market participants to access decentralized prediction markets; and to promote the United States' continued leadership in decentralized financial innovation.

HPC states that prediction markets are a natural extension of the federal derivatives framework, enabling participants to directly manage economic risk exposure to real-world events and aggregate dispersed information through continuously updated market prices. The price discovery capabilities of such markets have been widely validated, even surpassing traditional opinion polls and expert forecasts.

HPC points out that decentralized prediction markets based on public blockchains offer advantages such as transparency, non-custodial operation, and high resilience. They do not rely on centralized operators holding user funds, nor do they present single points of failure. All transactions are recorded in real time on public ledgers, facilitating regulatory and market oversight, with market access standards more transparent and unified.

HPC emphasizes that current rulemaking should not entrench reliance on single exchange operators, custodian intermediaries, or traditional settlement monitoring mechanisms, as this would hinder lawful participation of US users in decentralized prediction markets. HPC states it will continue promoting compliant access to Hyperliquid and HIP-4 outcome markets for US market participants and maintain ongoing communication with the CFTC.