Binance Under Investigation By Commodity Futures Trading Commission Over Derivatives Activity: Report

The Commodity Futures Trading Commission is reportedly investigating the major cryptocurrency exchange Binance.

What Happened: The commission is looking into whether U.S. residents have traded derivatives that Binance monitors, Bloomberg reported yesterday, citing people familiar with the matter.

This would fall under the commission's authority because the commission considers cryptocurrencies to be commodities, which are under its jurisdiction. Binance is not registered with the commission, according to Bloomberg.

Binance hasn't formally been accused of any violations.

Why It Matters: The possibility of a probe and any accusations speaks to the growing regulatory scrutiny as cryptocurrencies have risen in value and become a hot asset among traders.

Coinbase in a filing last month said it has been under investigation by the commission since 2017 for a variety of reasons including its algorithms. Coinbase is preparing to go public soon in what's expected to be a huge IPO.