Lucía Peña
The U.S. Commodity Futures Trading Commission (CFTC) has announced that it will begin using Nasdaq’s advanced market surveillance program as part of its broader strategy to expand oversight in the fast-growing digital asset sector.
In a Wednesday statement, the derivatives watchdog emphasized that the new monitoring system is designed to combat fraud, manipulation, and abusive trading practices across both traditional and crypto markets.
“As financial markets continue to evolve with emerging technologies, it is essential for the CFTC to stay one step ahead,” said Acting Chair Caroline Pham. She noted that Nasdaq’s program provides automated alerts and cross-market analytics, enabling faster and more efficient detection of irregular trading activity.
Preparing for Crypto Market Growth
The move comes as the agency prepares for a surge in cryptocurrency adoption. Earlier this month, the CFTC launched its “Crypto Sprint” initiative, which focuses on futures trading and incorporates recommendations from the President’s Working Group on Digital Asset Markets.
If Congress moves forward with pending legislation, the CFTC’s authority over digital assets could expand significantly. Several proposed bills would assign the regulator a larger role in overseeing cryptocurrencies, though the agency currently faces internal challenges, including commissioner turnover and staffing shortages.
The Clarity Act and Expanded Jurisdiction
One key proposal, known as the Clarity Act, seeks to provide the CFTC with exclusive jurisdiction over blockchain-based commodities. If passed, the law would require digital commodity exchanges, brokers, and dealers to register with the commission while also implementing stricter compliance, anti-money laundering, and reporting standards.
Nasdaq Program Enhances Market Protections
The CFTC stated that Nasdaq’s system will allow it to identify potential manipulation patterns more effectively, even during periods of heightened volatility.
“This includes real-time access to comprehensive order book data,” the agency explained, highlighting that such information is crucial for preventing market abuse across both traditional financial markets and digital assets.
