SEC, FINRA Probe 200+ Companies' Crypto Treasury Strategies Amid Suspected Insider Trading
Regulatory bodies, including the US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), are scrutinising nearly 200 publicly traded companies over their crypto-focused treasury strategies. The probe comes as companies are expected to invest over US$100 billion in digital assets this year.
The investigation centres around trading patterns that could indicate insider trading or breaches of Regulation Fair Disclosure (Reg FD). More than 200 companies have been reviewed, with some flagged for deeper investigation. FINRA is examining broker-dealer communications, while the SEC is tracing trades to potential tips. Many companies saw significant stock price increases, sometimes up to 40%, before announcing their crypto plans. Some firms, like Bitmine, experienced dramatic stock price surges after revealing their crypto treasury strategies. However, no companies have been officially named as under investigation for unusual trading patterns before announcing their 2025 crypto treasury plans.
The regulatory probe highlights the growing scrutiny of corporate crypto treasury strategies. While no companies have been named in relation to the ongoing investigations, the review of trading patterns suggests a focus on potential market manipulation. As companies continue to invest in digital assets, the regulatory landscape is evolving to ensure fair and transparent markets.
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