The U.S. Commodity Futures Trading Commission (CFTC) announced that it will begin using Nasdaq's market surveillance program in an effort to strengthen its oversight role over digital assets. In a statement today, the Board stated that Nasdaq's system will prevent fraud, abuse, and manipulation in the markets. Interim Chair Caroline Pham said, “As our markets evolve with new technologies, it is critical that the CFTC stays one step ahead.” The new system will provide the institution with automatic alerts and cross-market analysis. Pham also stated that it is preparing for the growth of cryptocurrency markets. Earlier this month, the CFTC launched its “Crypto Sprint” initiative, which focuses on crypto futures and recommendations from the Chairman’s Working Group on Digital Asset Markets. The CFTC's role in cryptocurrency oversight could expand significantly if bills being considered in Congress pass. Specifically, the Clarity Act, which has yet to be enacted, would grant the agency exclusive jurisdiction over blockchain-based commodities, require the registration of digital commodity exchanges and brokers, and impose new compliance, anti-money laundering, and reporting obligations. The CFTC stated that the Nasdaq system will be able to identify potential manipulation patterns and allow for rapid scaling during periods of high volume and volatility. “This includes access to comprehensive order book data to support real-time analysis and decision-making,” the statement said. “This is a critical element in preventing market abuse in both traditional and crypto asset markets.” *This is not investment advice.