Spoofing is illegal in the United States. The U.S. Commodity Futures Trading Commission (CFTC) is responsible for overseeing spoofing activities in the stock and commodities markets. 

demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period; or is, is of the character of, or is commonly known to the trade as, ‘spoofing’ (bidding or offering with the intent to cancel the bid or offer before execution).

It’s difficult to categorize canceled bids in the futures market as spoofing unless the action becomes highly repetitive. This is why regulators may also consider the intent behind the orders before they move to fine, charge, or inquire about potential spoofing behavior.

Other major financial markets, such as the U.K., also regulate spoofing. The Financial Conduct Authority (FCA) of the U.K. is permitted to fine traders and institutions responsible for spoofing.