Paradigm, one of the most influential venture capital firms in the crypto sector, filed a comment letter with the Commodity Futures Trading Commission on July 27 regarding its proposed rulemaking on prediction markets. The firm is pushing for clearer rules and advocating for a structured 90-day review process for event contract approval. This submission marks Paradigm’s second formal engagement with the CFTC on this topic in three months, highlighting the strategic priority of prediction market regulation for the industry’s major financial backers. Platforms such as Kalshi and Polymarket have reported significant growth, with billions in notional trading volume. For traders, the new regulatory framework could introduce short-term friction but reduce the existential risk of outright bans on certain contract categories.
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