The US CFTC introduces Nasdaq monitoring technology: encryption regulation enters the era of precise strikes.

The U.S. Commodity Futures Trading Commission is deploying a market monitoring system comparable to that of top Wall Street investment banks. This technological weapon from Nasdaq can analyze billions of transaction data in real-time, automatically identify market manipulation behaviors, and will fundamentally change the game rules of the encryption currency market.

The power of this system lies in its cross-market analysis capabilities. It can simultaneously monitor multiple markets such as spot, futures, and options, and identify those seemingly random yet meticulously planned manipulative behaviors through artificial intelligence algorithms. For example, in the common "pump and dump" tactic, the system issues a warning before the manipulator exits profitably by analyzing multi-dimensional data such as changes in order book depth, distribution of transaction times, and behaviors of associated accounts. Even more impressively, this system can track coordinated manipulation across exchanges, where hedging operations that go long on one exchange and short on another will have nowhere to hide.

The statement from CFTC Acting Chair Caroline Pham is thought-provoking: "We need to ensure that the encryption market and traditional markets have the same fairness." The underlying message behind this statement is that the U.S. government has regarded cryptocurrencies as mainstream financial assets, and is applying the same standards used for Nasdaq-listed companies to cryptocurrency projects. This is undoubtedly a wake-up call for those project teams that have been accustomed to wild growth.

The initial market reaction is quite positive. After the announcement, compliance concept coins such as COIN and GBTC surged, while anonymous coins and privacy coins were sold off. Institutional investors generally believe that the tightening of regulations may bring short-term pain, but in the long run, it will significantly reduce the systemic risk in the market, clearing the way for long-term funds such as pensions and insurance capital to enter.