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SEC, FINRA Launch Crypto DAT Insider Trading Probe: WSJ
U.S. regulators are probing suspicious trading in companies that adopted crypto-treasury strategies, with the SEC and FINRA flagging unusual volume and price jumps ahead of public announcements.
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The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are investigating unusual trading activity in the stocks of companies that announced crypto-treasury strategies this year, according to a Wall Street Journal exlusive.
What’s the Scoop?
- Regulatory Outreach: SEC and FINRA have contacted over 200 firms that moved to adopt digital asset reserves as part of their corporate strategy, raising concerns over abnormally high trading volumes and sharp price spikes immediately before announcements about crypto purchases.
- Focus on Fair Disclosure: Officials specifically cautioned companies about potential violations of Regulation Fair Disclosure (Reg FD), which prohibits selectively sharing material, nonpublic information with analysts, investors, or others who might trade on it.
- Growing Participation: Initially confined to BTC-only exposure, crypto treasury companies now hold a gamut of digital assets, ranging from blue chips like ETH and SOL to newer tokens like HYPE and IP.
- Market Leader: Strategy, led by Michael Saylor, continues to be the largest public corporate holder of digital assets. The firm recently acquired another 850 BTC (~$100M), bringing total holdings to 639,835 BTC.
Exclusive: Financial regulators have examined unusual trading patterns in the shares of companies that sought to make buying cryptocurrencies their core corporate strategy https://t.co/iioTQJRt98
— The Wall Street Journal (@WSJ) September 25, 2025