Hyperliquid backs CFTC prediction market proposal

• Hyperliquid (CRYPTO:HYPE) and Multicoin Capital have proposed new US prediction market rules to the CFTC.
• The firms said perpetual futures could improve liquidity and price discovery in regulated prediction markets.
• The proposal aims to help regulated US markets compete with offshore platforms, according to the companies.

Hyperliquid (CRYPTO:HYPE) and Multicoin Capital have asked the US Commodity Futures Trading Commission (CFTC) to allow perpetual futures contracts in regulated prediction markets.

The companies said perpetual futures could improve liquidity and price discovery compared with fixed-expiry prediction market contracts.

The proposal said perpetual futures would allow continuous trading without expiry dates while using funding payments to keep prices aligned with market expectations.

The companies said the model could reduce trading friction and improve access for market participants while supporting regulated trading venues.

Hyperliquid and Multicoin Capital said updated CFTC rules could help regulated US prediction markets compete with offshore platforms.

Hyperliquid operates a decentralised perpetual futures exchange, while Multicoin Capital invests in blockchain and digital asset businesses.

The proposal comes as the CFTC reviews comments on the future regulation of prediction markets in the United States.

At the time of reporting, Hyperliquid price was $56.06.