Everyone's favorite cryptocurrency Bitcoin (BTC) , which has skyrocketed over 460% year-to-date, was giving back some of its gains during trading on Wednesday.

Shares of Bitcoin were falling over 4% to $5,370 during midday trading on Wednesday. The cryptocurrency was falling as much as 8% earlier in the day.

Wednesday's drop is being attributed to a report from The U.S. Commodity Futures Trading Commission, an organization devoted to fostering open, transparent, competitive, and financially sound markets.

The report, entitled "A CFTC Primer on Virtual Currencies," argues that as a commodity, virtual currencies including Bitcoin are subject to the oversight of the commission when they are applied "in a derivatives contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce."

The report marks increased scrutiny from U.S. regulators.

More of What's Trending on TheStreet:

More from Currencies

Your Need to Know - Forward Look

Your Need to Know - Forward Look

Economist Perspective: Brexit

Economist Perspective: Brexit

Striking Options: Earnings, Gold, & Nasdaq

Striking Options: Earnings, Gold, & Nasdaq

Market of the Week: Euro FX

Market of the Week: Euro FX

Why Currency Moves Matter for Gold and Base Metals

Why Currency Moves Matter for Gold and Base Metals