Sudden stock price spikes ahead of crypto-related disclosures have drawn the attention of U.S. regulators, signaling deepening concern over potential market manipulation.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are reportedly reviewing trading patterns at companies that revealed digital asset purchases this year. According to the Wall Street Journal, officials have contacted more than 200 firms to assess whether confidential information was improperly shared prior to public announcements. Regulators have warned companies about potential violations of disclosure rules, focusing on selective communication of market-sensitive details. Many firms adopting crypto-treasury strategies were influenced by Strategy Inc., formerly Microstrategy, which began accumulating bitcoin in 2020. At the center of the probe are sudden stock movements preceding announcements of cryptocurrency acquisitions, raising suspicions of insider trading and regulatory non-compliance.