a16z Crypto Urges SEC to Streamline Prediction Market Rules, Cites 30B Weekly Volume at Kalshi

According to Odaily, a16z Crypto recently submitted comments to the U.S. Securities and Exchange Commission (SEC) on proposed prediction market regulations. The firm highlighted rapid market growth, with Kalshi's weekly average trading volume increasing from 300 million to 3 billion dollars.

a16z Crypto recommended that the SEC clarify its exclusive jurisdiction over designated contract markets to eliminate state law conflicts, introduce settlement mechanisms similar to ISDA committees, and leverage blockchain's auditability to monitor insider trading. The firm urged the SEC to adapt core principles for decentralized protocols, enabling prediction markets to reduce transaction costs and enhance transparency through blockchain technology.