Is MEV Considered a Form of Market Manipulation by Regulators?

Regulators are increasingly scrutinizing MEV, especially when it involves front-running, which aligns with traditional definitions of market manipulation. The US CFTC has stated that MEV extraction that constitutes front-running in a traditional market context would likely be viewed as manipulation in the digital asset space.

The key is whether the MEV activity involves deceit or an unfair informational advantage that harms other market participants, which front-running and sandwich attacks clearly do.