Regulators Investigate Crypto Treasury Activities Amid Pre-Announcement Trading Disclosures

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are currently examining more than 200 publicly listed companies for possible insider trading and breaches of Regulation Fair Disclosure (Reg FD) related to their strategies involving crypto assets in corporate treasuries. These investigations are centered on irregular trading activity, such as significant jumps in share prices and trading volumes, that occurred before companies revealed plans to invest corporate funds in cryptocurrencies like

, , or . Authorities have noticed questionable trading before official announcements in cases involving & Technology Group, , and , with share prices soaring by 20-40% in the days leading up to public disclosures Over 200 Firms Face SEC, FINRA Scrutiny Tied to Crypto-Treasury … [ 1 ].

These probes underscore worries about selective leaks of confidential information that could compromise market integrity. FINRA has issued official notices to numerous companies, stressing the importance of Reg FD compliance, while the SEC is tracking trading activity to uncover potential information sharing SEC and FINRA probe crypto-treasury stock spikes at 200+ firms [ 2 ]. Collectively, companies have raised over $100 billion to support these crypto treasury ventures, following a model popularized by MicroStrategy, which uses equity or debt to acquire digital currencies 200+ Corporate Crypto Treasury Firms Under Probe from SEC, … [ 3 ]. This regulatory attention highlights the ongoing conflict between the adoption of digital assets by corporations and current securities regulations.

Investigators have found evidence of unusual trading volumes and concentrated buying by insiders, brokers, or service providers ahead of key announcements. For instance, Bitmine’s stock price jumped from $4.67 to $46.58 within five days before it unveiled its Ethereum treasury plan, and MEI Pharma’s shares nearly doubled prior to revealing a

acquisition Understanding Crypto Regulation: U.S. vs. Global Policies | 1440 [ 4 ]. These trends have prompted caution from former SEC enforcement attorney David Chase, who pointed out that such notifications often mark the beginning of formal regulatory inquiries SEC and FINRA Investigate Pre-Announcement Stock Surges as … [ 5 ]. Both the SEC and FINRA are also scrutinizing broker-dealer communications, reviewing emails, chats, and calls for any signs of unauthorized information leaks How 2025’s Crypto Rules Are Transforming the Global Oversight? [ 6 ].

The surge in crypto treasury activity, with 212 companies amassing $102 billion for digital asset purchases, is now being closely examined for regulatory compliance. Firms generally raise capital through stock or debt offerings and then use the proceeds to buy crypto, a method that depends on maintaining a market-to-net-asset-value (mNAV) premium Digital Assets: From Crypto to Compliance [ 7 ]. If the mNAV falls below 1, this cycle breaks down, potentially forcing companies to sell their crypto holdings to support share prices—an event that could spark market instability Crypto Regulation: How It’s Governed in the U.S. and … [ 8 ]. Franklin Templeton Digital Assets has cautioned that this approach’s inherent weaknesses could result in forced asset sales during downturns, worsening price drops Crypto Treasury Boom Faces Hidden Structural Risk - The Coinomist [ 9 ].

Regulatory agencies are stepping up efforts to bring crypto-related practices in line with established financial oversight. The SEC’s move toward “clear, predictable rules” marks a shift from its previous enforcement-driven stance, but these ongoing investigations indicate continued regulatory vigilance Regulators Intensify Scrutiny on Crypto Treasury Deals: Over 200 … [ 10 ]. The results of these inquiries may lead to changes in how companies disclose information and the consequences for failing to comply. For now, organizations are under increased examination regarding their internal controls, with rising compliance expenses and legal exposure. The industry is watching closely as the SEC and FINRA strive to balance technological innovation with investor safeguards in the rapidly changing crypto sector.