A top US media outlet is reporting that market regulators are examining unusual stock activity that occurred before several companies disclosed plans to use newly raised funds to buy cryptocurrency.
The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have launched inquiries into whether insiders or others with advance knowledge traded ahead of those announcements, the Wall Street Journal reported Thursday.
Investigators are also weighing whether some companies violated Regulation Fair Disclosure, which requires firms to share material information broadly rather than selectively.
The scrutiny comes amid a wave of so-called “crypto-treasury” strategies, in which public companies raise cash through debt or equity offerings and allocate the proceeds to digital assets such as Bitcoin (BTC). These moves can spark sharp stock swings once made public. Regulators have noted spikes in trading volume and sudden price gains in the days preceding several recent announcements.
More than 200 firms that unveiled crypto-treasury initiatives this year have been contacted, Reuters reported. While no enforcement actions have been announced, some companies have received warning letters reminding them of disclosure obligations.
The probes underscore heightened oversight of how corporate cryptocurrency decisions intersect with securities laws. The SEC and FINRA did not immediately comment.
It remains unclear which firms are most under review or whether regulators will pursue cases of insider trading or selective disclosure. The inquiries reflect growing concern over market integrity as digital assets become more closely tied to traditional corporate finance.
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