CFTC Expands Crypto Oversight with Nasdaq System

The U.S. Commodity Futures Trading Commission (CFTC) is integrating Nasdaq's surveillance program as part of its effort to increase oversight of digital assets. This initiative, announced on Wednesday, aims to safeguard markets from fraud, abuse, and manipulation. Acting Chairman Caroline Pham emphasized the necessity for the CFTC to adapt to evolving markets and technologies. The new system will provide automated alerts and cross-market analytics to improve market surveillance. The CFTC is preparing for further growth in cryptocurrency markets, having recently initiated its "Crypto Sprint" program focused on crypto futures trading and recommendations from the President's Working Group on Digital Asset Markets. Significantly, the CFTC's role may be bolstered if Congress approves pending legislation that would grant the agency expanded authority over digital assets, including the Clarity Act, which seeks to give the CFTC exclusive jurisdiction over blockchain commodities and enforce new compliance requirements for digital platforms. The Nasdaq program is designed to help the CFTC detect patterns indicative of manipulation and to scale effectively during periods of high trading volume and volatility. It offers comprehensive order book data for real-time analysis, crucial for preventing market abuse across traditional and crypto markets. Disclaimer: The Block is an independent media source providing news and analysis. As of November 2023, Foresight Ventures is a principal investor in The Block, which maintains its independence in reporting on the crypto industry.