How Does Regulatory Oversight in Traditional Finance (TradFi) Address Spoofing Compared to Crypto CEXs?

In TradFi, regulatory bodies like the CFTC and SEC strictly prohibit spoofing and actively prosecute offenders, imposing heavy fines and criminal penalties. Crypto CEXs, operating in a less uniformly regulated global environment, often rely on their own internal surveillance systems and terms of service.

While some CEXs have robust monitoring, the lack of consistent, overarching global regulatory enforcement makes it a more persistent challenge in the crypto derivatives space.