The Commodity Futures Trading Commission (CFTC) is enhancing its market surveillance capabilities by adopting Nasdaq’s Market Surveillance platform to better monitor crypto transactions and prediction markets. This change aims to replace the agency's outdated surveillance system, focusing on reducing fraud and manipulation within these markets. The CFTC noted the necessity for advanced tools given the rapid evolution of market dynamics and the rise of continuous trading hours. Furthermore, as lawmakers consider the CLARITY Act, which could redefine regulatory oversight for cryptocurrencies, the CFTC emphasizes the importance of maintaining rigorous surveillance in an increasingly sophisticated financial landscape. This initiative accompanies broader legislative discussions that may significantly alter how cryptocurrencies are classified and governed, treating them more like commodities rather than securities. This strategic shift aligns with a wave of recommendations from a recent White House report urging stricter reporting obligations for crypto firms. Overall, the CFTC’s efforts mirror a growing recognition of the need for enhanced oversight in the cryptocurrency ecosystem as it matures.

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