A16z Backs CFTC on Prediction Markets, Cites $150B Polymarket-Kalshi Volumes

According to The Block, Andreessen Horowitz submitted an 18-page comment letter to the Commodity Futures Trading Commission on Friday, supporting federal oversight of prediction markets and opposing state-level crackdowns. A16z argued that cease-and-desist letters and proposed bans by state regulators create a "serious barrier to impartial access" for users and would "severely circumscribe available liquidity" by forcing exchanges to block users based on state residence.

Polymarket and Kalshi, the leading prediction market platforms, saw their combined lifetime volumes cross $150 billion in April. The CFTC has filed lawsuits against Illinois, Arizona, Connecticut, New York, and Wisconsin, asserting that prediction market event contracts fall under its exclusive jurisdiction as swaps.