U.S. regulators are scrutinizing stock trades that occurred just before several publicly listed digital asset treasury companies (DATs) announced new cryptocurrency purchases, according to a Wall Street Journal report citing people familiar with the matter.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have contacted some of the more than 200 DATs regarding unusual trading activity. Investigators are said to be reviewing cases where trading volumes spiked or stock prices jumped in the hours leading up to corporate disclosures about crypto acquisitions.
Regulatory Concerns
Officials have warned companies about possible breaches of Regulation Fair Disclosure (Reg FD), which requires material non-public information to be shared broadly and fairly. The rule aims to prevent selective disclosure that could allow investors or analysts to profit from insider knowledge before public announcements.
The increased scrutiny comes as more corporations explore crypto treasury strategies, inspired in part by Strategy—a firm that has accumulated billions of dollars’ worth of bitcoin since 2020. The model has gained momentum in recent months, with companies across industries announcing crypto purchases to diversify their treasuries.
A Growing Market Trend
Digital asset treasury firms have attracted strong investor backing, raising more than $20 billion in venture capital so far this year, according to data. The sector’s expansion has coincided with rising corporate interest in holding digital assets as balance sheet reserves.
Strategy, led by Michael Saylor, remains the largest corporate holder of bitcoin. On Monday, the company disclosed another purchase of 850 BTC for roughly $99.7 million, bringing its total holdings to 639,835 BTC, according to Bitcointreasuries data.
The Takeaway
The SEC and FINRA inquiries highlight growing regulatory attention on how publicly traded firms handle crypto-related disclosures. As digital assets become a larger part of corporate finance strategies, ensuring transparency and compliance will likely remain at the forefront of oversight efforts.
