a16z supports the CFTC, stating that state regulations will weaken the liquidity of prediction markets

Andreessen Horowitz (a16z) stated in a letter to the CFTC that state regulations on prediction markets are creating "barriers to fair access" and may weaken market liquidity.

a16z pointed out that requiring platforms to restrict user access by state will affect market uniformity and conflict with the federal principle of fair access. At the same time, frequent bans and enforcement actions may also compress overall trading depth. The agency emphasized that prediction markets play an important role in information discovery and probability pricing, supporting unified federal regulation. The CFTC, on the other hand, insists that the relevant contracts fall under its exclusive regulatory scope.

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