CFTC: Market Manipulation Prohibition Also Applies to Insider Trading, Exploiting Material Nonpublic Information Will Be Considered Illegal

BlockBeats News, April 1st, David I. Miller, Enforcement Director of the U.S. Commodity Futures Trading Commission (CFTC), stated that future enforcement will focus on five major areas, including insider trading, market manipulation, market abuse, retail fraud, and AML/KYC violations.

The CFTC explicitly stated that predictive markets will also be subject to insider trading regulation, and trading based on undisclosed significant information will be deemed illegal and will be "actively investigated and prosecuted." In terms of regulatory direction, the CFTC emphasized a shift away from an "enforcement-led" regulatory model to focus on core illegal activities such as fraud and manipulation. It also plans to introduce a new cooperation policy to provide a leniency path or even exemption for institutions that voluntarily self-assess, cooperate with investigations, and complete remediation. Additionally, the CFTC stated that it will enhance collaboration with trading platforms and law enforcement agencies to combat energy market manipulation and fraud using new technologies such as AI.