a16z Crypto Calls on U.S. SEC to Improve Prediction Market Regulation Framework and Resolve Jurisdictional Conflicts

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Odaily Planet Daily News reports that a16z Crypto recently submitted a comment letter to the U.S. SEC regarding the proposed rules for prediction markets (ANPRM). a16z Crypto states that prediction markets are in a period of explosive growth, with Kalshi’s weekly average trading volume increasing from $300 million to $3 billion. The organization emphasizes that by combining AI, blockchain, and prediction markets, AI agents can utilize on-chain programmable infrastructure to automatically hedge business risks without human intervention, thereby building a powerful information aggregation system.

In response to current regulatory obstacles, a16z Crypto offers several suggestions: reaffirm the U.S. SEC’s exclusive jurisdiction over designated contract markets (DCMs) to eliminate conflicts with state laws; introduce mechanisms similar to the ISDA Determinations Committee to optimize contract settlement; and leverage the auditability of on-chain transactions to monitor insider trading. Additionally, a16z Crypto urges the U.S. SEC to adjust core principles to accommodate decentralized protocols, allowing prediction markets to fully utilize blockchain technology to reduce transaction costs and increase transparency.

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