The Commodity Futures Trading Commission (CFTC) has announced a partnership with Nasdaq focused on automating the monitoring of the crypto market and preventing manipulation.
How the System Works
Nasdaq’s technology will provide the CFTC with automated alerts, real-time order book analysis, and cross-market monitoring. This will enable the detection of manipulation patterns and allow for rapid scaling during periods of high volatility.
Increasing Oversight of Cryptocurrencies
This collaboration comes shortly after the launch of the 'Crypto Sprint' program focusing on digital assets. If the pending Clarity Act is passed, the CFTC’s authority could expand significantly.
Potential Consequences of the Collaboration
The new system is expected to become a cornerstone of the CFTC's strategy to strengthen oversight of expanding cryptocurrency markets, providing regulators with improved monitoring capabilities for both traditional and crypto markets.
The collaboration between CFTC and Nasdaq marks a new chapter in the regulation of the cryptocurrency market, equipping regulators with more effective tools to monitor and combat manipulation.
