Multicoin Capital has teamed up with the Hyperliquid Policy Center to endorse the Commodity Futures Trading Commission’s (CFTC) proposed regulatory framework for prediction markets. On July 27, the two submitted a joint comment letter urging the CFTC to become the exclusive federal regulator for these markets, using the Commodity Exchange Act as the legal foundation.
The letter argues for a unified federal approach, rejecting a patchwork of state-level rules that could complicate oversight. It also advocates for a "settlement-based assessment" model, meaning the CFTC should evaluate contracts based on their actual settlement payouts rather than the subject matter they cover. For example, a contract predicting an election’s outcome would be assessed on how it settles in dollars instead of votes.
also the letter calls for transparency in the CFTC’s decision-making process, pushing the agency to publicly reveal how it evaluates prediction market products. This push for clarity arrives as prediction markets have grown rapidly: combined monthly volumes surpassed $50 billion recently, with nearly $45 billion recorded in June 2026 alone across major platforms.
Hyperliquid itself launched its outcome contracts under the HIP-4 protocol upgrade in May 2026. These contracts are fully backed with USDC stablecoins and avoid use, settling based on objective data verified by a decentralized validator set. The Hyperliquid Policy Center acts as the protocol’s liaison for regulatory engagement, making this partnership a strategic move to align with federal oversight proposals.
Interestingly, Kyle Samani, co-founder of Multicoin Capital who left the firm in early 2026, has publicly criticized Hyperliquid, creating tension between his views and the firm’s current stance. Despite his departure and critiques, Multicoin Capital reportedly holds more than $40 million worth of HYPE tokens, Hyperliquid’s native asset, showing a complex relationship between founder and firm.
