The Hyperliquid Policy Center (HPC) has submitted comments to the U.S. Commodity Futures Trading Commission (CFTC) advocating for a clear compliance framework for decentralized prediction markets. HPC's submission responds to the CFTC's Advanced Notice of Proposed Rulemaking on prediction markets, emphasizing the need for flexible, functionally oriented regulations that accommodate decentralized structures. HPC argues that decentralized prediction markets, built on public blockchains, offer transparency, non-custodial operations, and resilience, enhancing price discovery and regulatory oversight. The center calls for legal pathways for U.S. participants to access these markets, promoting U.S. leadership in decentralized finance. HPC stresses that current regulations should not enforce reliance on centralized operators, which could limit lawful participation in decentralized markets.