SEC, FINRA Probe 200+ Companies Over Crypto Treasury Strategies
Regulatory bodies, including the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), are scrutinising nearly 200 publicly traded companies over their crypto-focused treasury strategies. The investigation centres on potential insider trading and unusual stock trading activity ahead of companies' crypto treasury announcements.
The SEC and FINRA are examining unusual trading patterns prior to these companies' crypto treasury announcements. They are reviewing potential leaks in broker-dealer communications and tracing trades to possible tips. Companies experiencing notable pre-announcement stock surges include Trump Media & Technology Group, GameStop, and SharpLink Gaming. Trading volumes spiked markedly, suggesting coordinated or informed activity.
Bitmine, a Bitcoin mining firm, saw its stock price surge nearly tenfold in a week after revealing Ethereum treasury plans. Many companies saw stock increases of 20-40% before announcing their crypto plans. Public companies pursuing corporate crypto treasuries are expected to raise more than US$100 billion this year to acquire digital assets. More than 200 companies' disclosures were reviewed, with a subset flagged for deeper investigation.
As of 2025, the specific names of the companies under investigation have not been disclosed. The SEC and FINRA are working together to ensure fair and transparent markets, investigating potential breaches of Regulation Fair Disclosure (Reg FD) and insider trading. The outcome of these investigations may have significant implications for the crypto and stock markets.
