CFTC Steps Up Crypto Oversight By Implementing Nasdaq’s Surveillance Technology

The US Commodity Futures Trading Commission (CFTC) is taking a significant step to enhance its oversight of the expanding crypto market by adopting Nasdaq’s advanced surveillance program. 

CFTC To Stay Ahead Of Crypto Regulation

To bolster its regulatory capabilities, the regulator announced on Wednesday that it has chosen Nasdaq to supply market surveillance and fraud detection technology. 

Nasdaq’s Market Surveillance system is designed to cover multiple asset classes and is instrumental in identifying potential market manipulation. By leveraging comprehensive order book data, this technology enables regulators to conduct real-time analysis, facilitating swift decision-making and robust oversight.

As the CFTC continues to oversee crypto assets, the US government’s increasing focus on the digital asset landscape, especially in terms of creating a more accommodative regulatory environment, has expanded the agency’s responsibilities.

The market structures are also changing, with many exchanges adopting 24-hour trading. Given these developments, the CFTC recognizes the need for more sophisticated tools to detect and prevent market abuse effectively.

Acting Commodity Futures Trading Commission Chair Caroline Pham emphasized the importance of staying ahead in regulatory practices, stating: 

It’s critical that the CFTC stays ahead of the curve. Nasdaq Market Surveillance will provide the CFTC with automated alerts and cross-market analytics that will benefit each of the CFTC’s operating divisions. 

Pham highlighted that this partnership will enhance the agency’s ability to protect markets such as crypto, from fraud and manipulation while improving efficiency in analyzing market trends and unusual trading activities.

Collaboration With SEC

Tal Cohen, Nasdaq’s president, noted the company’s unique position at the intersection of innovation and regulation, expressing pride in partnering with the CFTC to promote the integrity and resilience of US derivatives markets.

This announcement coincides with the CFTC’s launch of the next phase of its “Crypto Sprint” initiative, aimed at evaluating and implementing recommendations from the White House regarding digital asset regulation. 

As reported by Bitcoinist last week, Pham has also called for public feedback on these recommendations, reinforcing the agency’s commitment to transparency and stakeholder engagement.

In alignment with the Securities and Exchange Commission’s (SEC) “Project Crypto,” the CFTC is also working closely with SEC Chairman Paul Atkins and Commissioner Hester Peirce to provide regulatory clarity and foster innovation within the digital assets market. 

Pham expressed gratitude for the supportive feedback from stakeholders regarding the CFTC’s initiative on listed spot crypto trading, emphasizing that this collaborative effort responds to President Trump’s call for American leadership in crypto.

Featured image from DALL-E, chart from TradingView.com