The U.S. CFTC collaborates with Nasdaq's monitoring system, targeting manipulation and fraud in the Crypto Assets market.

The Commodity Futures Trading Commission (CFTC) is adopting Nasdaq's advanced market surveillance system to strengthen oversight of the Crypto Assets market. This move is seen as an important step for the agency to expand its influence in the digital asset space and could lay the groundwork for forthcoming legislative changes.

Nasdaq Monitoring System Launches: Combating Market Abuse

The CFTC stated in a statement on August 27 that Nasdaq's monitoring plan will help the market guard against fraud, abuse, and manipulation.

Acting Chair Caroline Pham emphasized that as the market and technology evolve rapidly, the CFTC must maintain its leading position. The new system will provide automated alerts and cross-market analysis functions, and it can quickly expand monitoring capabilities during spikes in trading volume and volatility.

The system will also allow the CFTC to access complete order book data, supporting real-time analysis and decision-making, which is crucial for preventing abuses in both traditional and Crypto Assets markets.

Regulatory powers may be significantly expanded

Currently, the United States Congress is deliberating on several bills related to digital assets, including the unsigned Clarity Act.

The bill will grant the CFTC exclusive jurisdiction over blockchain-based commodities, requiring digital commodity exchanges, brokers, and dealers to register and comply with new compliance, anti-money laundering (AML), and reporting obligations.

If the legislation passes, the CFTC's role in the regulation of Crypto Assets will significantly expand, becoming one of the core regulatory bodies in the United States digital asset market.

Internal Challenges and 'Encryption Sprint' Program

Despite the expected expansion of regulatory authority, the CFTC still faces human resource challenges, with four commissioners, including Caroline Pham, possibly leaving after the new chairman takes office.

To respond to market changes, the CFTC launched the "Crypto Sprint" program earlier this month, focusing on recommendations from the crypto futures trading and presidential digital asset market working group to pave the way for future regulatory frameworks.

Industry Impact and Market Response

Industry observers point out that the introduction of the Nasdaq monitoring system will make the CFTC more efficient in detecting potential manipulation patterns and identifying suspicious trading behaviors.

This means higher compliance requirements for cryptocurrency exchanges, market makers, and large investment institutions, and it may also affect market liquidity and trading strategies in the short term.

However, in the long run, this initiative is expected to enhance market transparency and investor confidence, attracting more institutional funds into the Crypto Assets space.

Conclusion

The collaboration between the CFTC and Nasdaq marks a new phase in the regulation of Crypto Assets in the United States. With legislative advancements and upgrades in monitoring technology, the standardization process of the digital asset market will accelerate. For investors, this represents both an increase in compliance pressure and a key step towards market maturity and security.