Svmuureports that a16z Crypto recently submitted a comment letter to the U.S. SEC regarding the Advance Notice of Proposed Rulemaking (ANPRM) for prediction markets. a16z Crypto stated that prediction markets are experiencing explosive growth, with Kalshi's average weekly trading volume surging from $300 million to $3 billion. The firm 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 constructing a powerful information aggregation system.
Addressing current regulatory barriers, a16z Crypto proposed several recommendations: reaffirming the 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. Furthermore, a16z Crypto urged the SEC to adjust its core principles to accommodate decentralized protocols, allowing prediction markets to fully leverage blockchain technology to reduce transaction costs and enhance transparency.