U.S. CFTC Enhances AI Monitoring to Predict Market Trades, Strengthens Cross-Border Enforcement and On-Chain Analysis in Tandem

BlockBeats News, May 15, the U.S. Commodity Futures Trading Commission (CFTC) is actively using artificial intelligence tools to monitor and predict market trading behavior in order to identify insider trading and market manipulation risks on platforms like Polymarket.

CFTC Chairman Michael Selig stated that the regulatory agency is leveraging AI to perform pattern recognition on large-scale trading data to screen for unusual trading patterns, identify potential violative accounts, and assist in determining whether to initiate an investigation or issue subpoenas. He emphasized that in the context of rapidly growing data volume, AI has become a critical tool for regulatory work.

Reports indicate that despite platforms like Polymarket being predominantly based overseas and unlicensed in the U.S., the CFTC has expressed its intention to take enforcement action against cross-border trading activities involving U.S. participants and, if necessary, exercise extraterritorial jurisdiction. The agency is combining on-chain analytics tools (such as Chainalysis) with market surveillance systems to jointly monitor the crypto market and traditional financial markets.

Recently, platforms like Polymarket and Kalshi have strengthened their measures to scrutinize insider trading and market manipulation, introducing third-party on-chain data analysis services to comply with regulatory requirements.

The CFTC stated that it has received a significant number of reports of trading anomalies and is currently investigating "hundreds to thousands" of potential leads, with the enforcement scope possibly expanding further in the future.