Hyperliquid Policy Center Urges CFTC to Clarify Rules for Blockchain Prediction Markets

In comments on the CFTC’s ANPRM, Hyperliquid Policy Center called for a flexible, function-based framework to allow lawful U.S. access to decentralized prediction markets on public blockchains.

HYPE

Summary

Hyperliquid Policy Center said it submitted comments on the CFTC’s advance notice of proposed rulemaking on prediction markets, urging the agency to adopt a flexible, function-based regulatory framework for decentralized markets on public blockchains. The group said U.S. users should be able to legally access these markets and argued that non-custodial, transparent market structures can support price discovery and risk management. The filing adds detail to Hyperliquid Policy Center’s earlier call for clearer guidance on how blockchain-based event markets may fit within U.S. derivatives regulation.

Terms & Concepts
  • Prediction market: A market where contracts are traded based on the outcome of future events, often used to aggregate expectations and information.
  • Public blockchain: An open blockchain network that anyone can access and verify, with transactions and activity recorded transparently on-chain.
  • Non-custodial: A system in which users retain control of their own assets or keys instead of entrusting them to an intermediary.