a16z Crypto calls on US SEC to optimize the regulatory framework for prediction markets, proposes introducing blockchain technology

Odaily Planet Daily News a16z Crypto recently submitted a comment letter to the US SEC regarding the Advance Notice of Proposed Rulemaking (ANPRM) for prediction markets. a16z Crypto stated 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 institution emphasized 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.

Addressing existing regulatory obstacles, a16z Crypto proposed several recommendations: reiterating the US SEC's exclusive jurisdiction over Designated Contract Markets (DCMs) to eliminate conflicts with state laws; introducing a mechanism similar to the ISDA Determinations Committee to optimize contract settlement; and leveraging the auditability of on-chain transactions to monitor insider trading. Additionally, a16z Crypto urged the US SEC to adjust core principles to accommodate decentralized protocols, allowing prediction markets to fully utilize blockchain technology to reduce transaction costs and enhance transparency.