HPC AND MULTICOIN BACK THE CFTC'S PREDICTION MARKETS FRAMEWORK

Summary from the TLDR Crypto newsletter

Prediction market trading volume topped $50 billion in June, drawing major exchanges and Wall Street firms into a space the CFTC is now formalizing through an advance rulemaking on event contract oversight. Hyperliquid Policy Center and Multicoin Capital filed a joint comment supporting the proposed framework, arguing that Congress in 2010 granted the CFTC sole authority over exchange-traded event contracts, preempting state gambling laws that several states are using to challenge these markets in court. The comment urges the Commission to codify a settlement-based reading of the statutory "involves" test, limiting contract review to what a contract actually pays out on rather than peripheral subject-matter connections, and to publish reasoning when reviews conclude without a block, not only when contracts are denied. Hyperliquid's onchain outcome-based contracts, launched in May and recently reaching all-time high open interest with all positions collateralized and settled onchain, provide the use case HPC cites in arguing that uniform federal rules are the condition for these markets' sustained growth.