Hyperliquid Policy Center sends letter to CFTC: Compliance channels should be opened for decentralized prediction markets.

The Hyperliquid Policy Center (HPC) announced that it has formally submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC) regarding its Notice of Advance Proposed Rule (ANPRM) on prediction markets. HPC advocates for improving the regulatory framework for centralized prediction markets while establishing a clear compliance path for decentralized prediction markets based on public, permissionless blockchains. In its comment letter, HPC calls on the CFTC to develop more flexible, function-oriented rules to accommodate decentralized market structures; to establish clear and legal channels for U.S. market participants to access decentralized prediction markets; and to promote the U.S.'s leading position in decentralized finance innovation. HPC states that prediction markets are a natural extension of the federal derivatives framework, helping participants directly manage their economic risk exposure to real-world events and aggregating dispersed information through continuously updated market prices. Its price discovery capabilities have been widely validated, even surpassing traditional polls and expert predictions. It points out that decentralized prediction markets based on public blockchains possess advantages such as transparency, non-custodial nature, and high resilience. They do not rely on centralized operators holding user funds and do not pose a single point of failure risk. All transactions are recorded in real time on a public ledger, facilitating regulation and market oversight, while market access standards are more transparent and uniform. HPC emphasizes that current rule-making should not solidify reliance on a single exchange operator, custodian intermediary, or traditional settlement monitoring mechanisms, otherwise it will hinder US users' legitimate participation in decentralized prediction markets. It states that it will continue to promote compliant access to Hyperliquid and HIP-4 outcome markets for US market participants and will continue to communicate with the CFTC.