The newly launched Hyperliquid Policy Center (HPC) has formally jumped into the U.S. debate over prediction-market regulation, filing comments with the Commodity Futures Trading Commission (CFTC) in response to the agency’s Advance Notice of Proposed Rulemaking (ANPRM) on prediction markets.
Led by prominent crypto lawyer Jake Chervinsky, the Washington, D.C.–based non-profit urged the CFTC to adopt a flexible, function-based regulatory approach that can accommodate decentralized market designs. In a comment letter filed Thursday, HPC pressed for an explicit compliance pathway that would allow U.S. participants to access decentralized prediction markets while protecting and promoting American leadership in decentralized finance innovation.
HPC framed prediction markets as part of the broader U.S. derivatives tradition, arguing federal derivatives laws exist to support price discovery and enable producers and consumers to hedge and plan. The group called publicly generated market prices “a public good,” saying they aggregate dispersed information and produce decision-useful signals that can outperform less structured methods. HPC also pointed out that prediction-market pricing already influences broader markets—its data is used in major trading terminals, news outlets and social media.
On the technical side, the policy center highlighted advantages unique to decentralized prediction markets: transparency, non-custodial settlement, built-in operational resilience, and the ability to compose market data and collateral directly with other on-chain components such as smart contracts, trading systems and risk-management protocols. HPC argued these design features help meet regulatory goals the CFTC has cited in relation to centralized prediction markets—impartial access, settlement integrity, customer protection and effective market surveillance.
However, HPC warned that rulemaking tailored only to centralized structures risks locking in assumptions that a single exchange operator must sit at the center of every market, or that surveillance and settlement mechanics must mirror traditional operator models. The center said enabling responsible U.S. access to decentralized prediction markets will require additional steps beyond the ANPRM, but added that the CFTC still has a real opportunity to shape a workable access pathway.
HPC’s filing comes amid broader activity around the Hyperliquid ecosystem. The policy center’s comments follow a NewsBTC report that Hyperliquid is testing an upgrade called HIP-4, aimed at enabling traders to wager on real-world outcomes—a move that comes as the platform continues rapid expansion. As of this writing, Hyperliquid’s native token HYPE was trading around $39, down roughly 6% over the past week.
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