a16z Crypto urges the US SEC to optimize the regulatory framework for prediction markets and proposes the introduction of blockchain technology.

Odaily reported that a16z Crypto recently submitted a comment letter to the US 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 weekly average trading volume rising from $300 million to $3 billion. The firm 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 powerful information aggregation system.

In response to current regulatory obstacles, a16z Crypto put forward several recommendations: reaffirming the US SEC's exclusive jurisdiction over Designated Contract Markets (DCM) to eliminate state law conflicts; introducing mechanisms similar to the ISDA Determinations Committee to optimize contract settlement; utilizing the auditability of on-chain transactions to monitor insider trading. Furthermore, a16z Crypto urged the US SEC to adjust core principles to accommodate decentralized protocols, allowing prediction markets to fully utilize blockchain technology to reduce transaction costs and enhance transparency.