Regulators Gain X-Ray Vision into Crypto Market Schemes

The U.S. Commodity Futures Trading Commission (CFTC) has integrated a financial surveillance tool developed by Nasdaq to enhance its capabilities in detecting market abuse, including insider trading and manipulation in equities and crypto markets [1]. This move is part of a broader effort to modernize the CFTC’s outdated 1990s-era infrastructure, allowing the agency to better respond to the evolving risks in

The initiative highlights the increasing focus on combating pump-and-dump schemes and other forms of market manipulation, particularly as the number of such activities has grown significantly in recent years [1]. With digital assets continuing to attract attention from both institutional and retail investors, regulators are under pressure to ensure fair and transparent markets. Nasdaq’s solution is positioned to address these challenges by offering advanced analytics and real-time monitoring capabilities, supporting the CFTC in its mission to protect market integrity.

At the same time, broader regulatory developments are shaping the landscape for crypto in the U.S. The White House issued a comprehensive report in July 2024 outlining policy proposals for digital assets, including tax reforms, market structure guidelines, and anti-money laundering (AML) measures. One of the key recommendations was for the Treasury Department and the National Institute of Standards and Technology (NIST) to develop additional know-your-customer (KYC) parameters for digital assets [1]. While some stakeholders argue that such measures are necessary to foster institutional adoption, others, particularly in the decentralized finance (DeFi) sector, have raised concerns that these proposals may compromise the decentralized nature of blockchain technology. Critics warn that embedding government-issued identity requirements into smart contracts could fundamentally alter the permissionless architecture that underpins DeFi [1].

The regulatory environment is also being influenced by enforcement trends. According to recent statistics, the CFTC increased its enforcement actions by 59% in 2024, focusing on fraud and unregistered platforms [3]. Meanwhile, the SEC filed 33 crypto-related enforcement actions in 2024, a 30% decrease from the previous year, while penalties and disgorgements reached $2.6 billion [3]. These figures indicate a shift in regulatory strategy, with agencies moving toward structured rule-making and task forces aimed at providing clearer guidance rather than relying solely on enforcement. This approach is expected to create a more predictable environment for market participants.

In parallel, the U.S. government is also rethinking its stance on central bank digital currencies (CBDCs). Executive Order 14178, signed in 2025, explicitly prohibits the Federal Reserve from issuing a retail CBDC and instead encourages private-sector innovation in stablecoin issuance [3]. This decision aligns with a broader preference for commercial solutions in digital asset markets, as seen in the growing number of stablecoins in circulation and the adoption of blockchain-based infrastructure by major corporations [3].

As these regulatory and enforcement developments take shape, the integration of Nasdaq’s surveillance tool marks a critical step in modernizing market oversight. By leveraging advanced analytics and cross-market correlations, the CFTC is enhancing its ability to detect and respond to manipulation in real time. This initiative, alongside broader policy reforms and enforcement strategies, reflects the U.S. government’s commitment to fostering a transparent, secure, and innovation-friendly digital asset ecosystem.

Source:

[1] CFTC Adopts Nasdaq Financial Market Monitoring Tool to ... (https://cointelegraph.com/news/cftc-nasdaq-financial-surveillance-tool)

[2] EU Tech Regs Remain a Flash Point in US Trade Talks (https://www.pymnts.com/cpi-posts/eu-tech-regs-remain-a-flash-point-in-us-trade-talks-white-house-threatens-additional-tariffs/)

[3] Crypto Regulations in the United States Statistics 2025 (https://coinlaw.io/crypto-regulations-in-the-united-states-statistics/)

[4] The Future of Crypto: Regulations and Trading Strategies (https://www.onesafe.io/blog/navigating-crypto-regulations-and-trading-strategies)