U.S. regulators have launched an investigation into unusual stock activity occurring just before crypto treasury announcements by public companies.
According to the Wall Street Journal, the SEC and Finra have sent inquiry letters warning about potential violations of Regulation Fair Disclosure (Reg FD), which prohibits firms from sharing material nonpublic information with select investors. The regulators suspect that sharp trading volumes and price spikes ahead of announcements may indicate insider trading.
Lawyers note that such letters often signal the start of a broader insider trading probe. The suspicious timing of trades right before disclosures of Bitcoin or Ethereum acquisitions—has become the primary focus of the investigation.
This scrutiny comes as the trend of adding Bitcoin (BTC) and Ethereum (ETH) to corporate treasuries continues to accelerate. Over $20 billion has flowed into digital asset treasury companies this year alone. Strategy, under Michael Saylor’s leadership, recently added another 850 BTC, bringing its total holdings to 639,835 BTC, underscoring the growing momentum of this strategy.
