a16z supports CFTC, stating state-level regulations will weaken prediction market liquidity

Odaily reported that Andreessen Horowitz (a16z) stated in a comment letter to the CFTC that state-level regulatory measures targeting prediction markets are creating "barriers to fair access" and could weaken market liquidity.

a16z pointed out that requiring platforms to restrict user access on a state-by-state basis would affect market unity, conflicting with the principle of fair access at the federal level. At the same time, frequent bans and enforcement actions could also compress overall trading depth.

The institution emphasized that prediction markets play an important role in information discovery and probability pricing, and supports unified federal regulation. The CFTC, on its part, insists that related contracts fall within its exclusive regulatory scope.