US Regulatory Bodies Launch Investigation into Crypto Treasury Firms
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (Finra) have initiated an investigation into several companies that have invested in digital assets, following reports of unusual trading activities related to their cryptocurrency acquisition plans, according to a report by the Wall Street Journal (WSJ). The probe aims to determine whether these companies or individuals associated with them have benefited from suspicious trades made prior to official announcements.
The investigation has been welcomed by some industry experts, including capitalist Mike Dudas, who described the situation as a “bloodbath with brows” and argued that this type of enforcement is necessary to rebuild trust and transparency in digital markets. The SEC and Finra are reportedly focusing on companies that have exhibited unusually high trade volumes and sudden price jumps shortly before public statements about corporate crypto purchases.
Insider Trading Concerns
According to the report, investigators believe that some investors may have used non-public information to buy shares in major crypto-related companies, resulting in quick profits once the announcements were made. While the specific companies under investigation have not been named, the regulatory bodies are said to be examining patterns of trading activity that may indicate insider trading or other forms of market manipulation.
The SEC and Finra have reminded companies of their obligation to disclose market-moving decisions uniformly, warning that selective communication or delayed disclosure of information to investors and analysts could be considered market manipulation. Companies must ensure that all stakeholders have equal access to critical information at the same time to maintain a fair and transparent market.
Crypto Adoption on the Rise
The increased scrutiny reflects broader efforts to protect investors as the adoption of digital assets accelerates. Last year, a growing number of companies added cryptocurrencies to their balance sheets to diversify their portfolios and gain exposure to blockchain-based returns. According to data from Bitcoin treasuries, 194 public companies now hold over 1 million BTC, worth around $113 billion. Separate data from Strategicethreserve lists 69 organizations that hold 5.26 million ETH, worth around $20.6 billion.
Even Solana, which is traditionally preferred by retail users, has seen significant adoption by companies, with nine companies holding over 13.4 million SOL, worth around $2.6 billion. As the crypto market continues to evolve, regulatory bodies are under increasing pressure to ensure that companies are operating fairly and transparently. For more information, visit https://cryptoslate.com/sec-investigate-crypto-treasury-firms-for-suspicious-trading-activities/
