US CFTC plans to adopt Nasdaq's monitoring system to expand cryptocurrency supervision

The U.S. Commodity Futures Trading Commission (CFTC) issued a major announcement on the 27th, announcing that it will introduce an advanced surveillance system from Nasdaq Markets to further strengthen its oversight of the cryptocurrency market.

This initiative aims to enhance its ability to identify and prevent fraudulent, abusive, and manipulative market practices, protect investors, and maintain overall market stability. The CFTC stated that this move marks a significant upgrade to its technological infrastructure for digital asset regulation.

In a statement, Acting CFTC Chairwoman Caroline Pham emphasized that the new system will provide the agency with real-time monitoring and automated alerts, enhance cross-market analytics capabilities, and support access to highly granular market information, including complete order book data.

She noted that these capabilities will not only help identify anomalous trading behavior in real time, but also enable regulators to respond more quickly and accurately in the complex and highly interconnected crypto markets.

Pham further stated that the deployment of this system is part of the CFTC's proactive efforts to adapt to the rapid growth of the crypto asset market and reflects its strategic commitment to extending its proven regulatory expertise in traditional financial markets to the emerging digital asset sector.

In addition to introducing new monitoring technologies, the CFTC is also actively laying out structural plans for the possible expansion of its regulatory responsibilities in the future. The U.S.

Congress is currently considering several legislative proposals aimed at clarifying the regulatory framework for digital assets. If passed, the CFTC's regulatory authority in the cryptocurrency sector is expected to be significantly expanded, including oversight of the spot market and a wider range of digital asset transactions.

To further systematically advance regulatory capacity building, the CFTC launched a special program called "Crypto Sprint" earlier this month. This program focuses on compliance and monitoring in the crypto futures market and actively responds to the policy recommendations of the President's Task Force on Digital Asset Markets, striving to maintain market innovation while building a more robust and resilient regulatory system.

Through this series of technological introductions and institutional preparations, the CFTC is making forward-looking arrangements to address the future development and challenges of the cryptocurrency market, demonstrating its proactive approach to balancing financial innovation with the prevention of systemic risks.