a16z Crypto calls on the U.S. SEC to optimize the regulatory framework for prediction markets and resolve jurisdictional conflicts.

a16z Crypto recently submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) regarding a proposed Notice of Prediction Market Rulemaking (ANPRM). a16z Crypto stated that prediction markets are experiencing explosive growth, with Kalshi's average weekly trading volume increasing from $300 million to $3 billion. The agency emphasized that by combining AI, blockchain, and prediction markets, AI agents can leverage on-chain programmable infrastructure to automatically hedge business risks without human intervention, thereby building a robust information aggregation system. Addressing existing regulatory obstacles, a16z Crypto made several recommendations: reaffirming the SEC's exclusive jurisdiction over Designated Contract Markets (DCMs) to eliminate conflicts of state law; introducing a mechanism similar to the ISDA Decision Committee to optimize contract settlement; and utilizing the auditability of on-chain transactions to monitor insider trading. Furthermore, a16z Crypto urged the SEC to adjust its core principles to accommodate decentralized protocols, allowing prediction markets to fully utilize blockchain technology to reduce transaction costs and increase transparency.