Hyperliquid Policy Center Addresses CFTC: Open a Compliant Path for Decentralized Prediction Markets

Hyperliquid Policy Center (HPC) announced that it has formally submitted a comment letter regarding the U.S. Commodity Futures Trading Commission (CFTC)'s proposed rule notice (ANPRM) on prediction markets, advocating for establishing a clear compliance pathway for decentralized prediction markets based on public, permissionless blockchains while improving the regulation framework for centralized prediction markets.
In the comment letter, HPC calls on the CFTC to develop more flexible, function-oriented rules to accommodate decentralized market structures; to establish clear legal channels for U.S. market participants to access decentralized prediction markets; and to promote the United States' leadership in decentralized financial innovation. HPC states that prediction markets are a natural extension of the federal derivatives framework, helping participants directly manage economic risk exposure related to real-world events, and aggregating dispersed information through continuously updated market prices. Their price discovery capability has been widely validated, even surpassing traditional polls and expert forecasts.
It points out that decentralized prediction markets based on public blockchains have advantages such as transparency, non-custodial operation, and high resilience, without relying on centralized operators holding user funds or posing single points of failure; all transactions are recorded in real-time on a public ledger, facilitating regulation and market oversight, while market access standards are more transparent and unified.
HPC emphasizes that current rulemaking should not entrench reliance on a single exchange operator, custodial intermediary, or traditional settlement monitoring mechanisms, as this would hinder legitimate participation of U.S. users in decentralized prediction markets. It states that it will continue to promote compliant access for U.S. market participants to Hyperliquid and HIP-4 outcome markets and maintain ongoing communication with the CFTC.