The U.S. Commodity Futures Trading Commission (CFTC) has unveiled a major upgrade to its market oversight systems, adopting Nasdaq’s advanced Market Surveillance platform to better detect fraud, insider trading, and manipulation across derivatives and digital asset markets.
The system went live on August 27, 2025, under the leadership of Acting Chair Caroline D. Pham, and replaces the CFTC’s legacy 1990s-era monitoring infrastructure.
CFTC to Become a ‘21st Century Regulator’ With Nasdaq Market Surveillance
The upgrade arrives at a pivotal moment for U.S. regulators as Congress weighs the Financial Innovation and Technology for the 21st Century Act, which could expand the CFTC’s jurisdiction over spot digital asset markets.
In announcing the launch, Pham said the technology marks a major step toward turning the CFTC into a “21st century regulator.”
“As our markets continue to evolve and integrate new technology, it’s critical that the CFTC stays ahead of the curve,” Pham said.
Pham added that “Nasdaq Market Surveillance will, for the first time, provide the CFTC with automated alerts and cross-market analytics that will better protect our markets from fraud, manipulation and abuse. This will allow our staff to identify unusual or disruptive trading activity more efficiently and take action more quickly.”
The move comes as the CFTC faces mounting pressure to strengthen its oversight of the fast-growing digital asset sector.
The agency, traditionally responsible for derivatives tied to commodities, currencies, and fixed income, has taken on a larger role in policing crypto markets amid efforts in Washington to close regulatory gaps.
A recent White House report urged Congress to grant the CFTC explicit authority over spot markets for non-security digital assets, underscoring the need for modern surveillance tools.
Notaby, Nasdaq Market Surveillance is already deployed by more than 50 exchanges and 20 international regulators, making it the most widely used surveillance technology in global markets.
The platform provides regulators with integrated monitoring across asset classes, real-time data analysis, and automated alerts capable of flagging potential insider trading, wash trading, and other market abuses.
Its scalable architecture enables regulators to handle periods of extreme volatility, while access to detailed order book data allows for granular trade-by-trade scrutiny.
Tal Cohen, President at Nasdaq, said the partnership with the CFTC shows the importance of advanced monitoring tools in a rapidly evolving market.
“Today’s financial markets demand surveillance technology that can adapt to rapid regulatory evolution and emerging asset classes,” he said. “We’re proud to partner with the CFTC and support their mission to promote the integrity, resilience, and vibrancy of U.S. derivatives markets.”
At the same time, concerns over manipulation in crypto markets are mounting. A recent Chainalysis report estimated that wash trading on select blockchain networks accounted for as much as $2.57 billion in volume, with a small number of actors driving the bulk of activity.
Pump-and-dump schemes have also surged, fueled by meme coins and low-cost trading on new blockchains.
Researchers warned that such activity is often tied to pump-and-dump schemes, where token creators inflate volumes to lure investors before selling off holdings.
The urgency for stronger surveillance has also been highlighted by the speed of illicit activity. A Global Ledger study found that crypto criminals were able to move stolen funds within four seconds of an attack, far outpacing the detection systems of major exchanges.
In some cases, laundering was completed in under three minutes, well before public disclosures were made.
U.S. Regulators Push Forward on Crypto Oversight Amid Rising Hacks
The U.S. Treasury Department and the Commodity Futures Trading Commission (CFTC) are accelerating efforts to build new safeguards for digital assets, as crypto-related crime continues to outpace detection systems.
On August 19, the Treasury opened a 60-day public comment period under the recently enacted GENIUS Act, seeking input on tools such as artificial intelligence, blockchain monitoring, digital identity verification, and APIs to help financial institutions combat money laundering.
The initiative follows a surge in crypto crime, with $3 billion stolen across 119 incidents in the first half of 2025 alone. Treasury Secretary Scott Bessent called the GENIUS Act “essential” to securing U.S. digital asset leadership and expanding regulated dollar-based stablecoins globally.
Recent data highlights the challenge regulators face. According to blockchain analytics firm Global Ledger, hackers can move stolen funds in as little as four seconds, roughly 75 times faster than exchange alert systems respond.
In over two-thirds of cases, assets were transferred before the incidents became public, with some laundered in under three minutes.
Parallel to the Treasury’s efforts, the CFTC has launched a “crypto sprint” to advance spot crypto regulation. Acting Chair Caroline Pham said the four-phase initiative, running alongside the SEC’s Project Crypto, aims to establish immediate federal-level trading of digital assets.
Public comments are due by October 20, with final rules expected in the program’s concluding phase. The effort builds on an August 5 proposal to allow spot crypto trading on federally registered exchanges, part of recommendations from the President’s Working Group on Digital Asset Markets.
The CFTC, however, faces uncertainty at the leadership level. Commissioner Kristin Johnson will step down September 3, leaving Pham as the sole member of the normally five-person agency. Pham is also expected to exit once President Trump’s nominee Brian Quintenz is confirmed, with reports linking her to crypto payments firm MoonPay.
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