Binance Crackdown Threatens US Trading Firms, Spooks Market
- CFTC complaint this week signaled scrutiny of Binance ties
- Derivatives watchdog doesn’t identify companies in lawsuit
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A top US regulator’s case against Binance Holdings Ltd. is mushrooming well beyond Changpeng Zhao’s company and rattling American firms that officials say worked with the exchange to trade crypto.
The Commodity Futures Trading Commission’s scrutiny of arrangements that three trading firms had with the exchange has already sent chills across an industry, which relies on US licenses to make markets for securities. The firms weren’t identified in the CFTC’s lawsuit.