SEC, Finra investigate unusual trading before crypto treasury company announcements

According to Odaily Planet Daily, over 200 companies that announced the adoption of crypto treasury strategies have come under scrutiny from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (Finra) due to unusual stock price fluctuations prior to the disclosure of these announcements. Sources familiar with the matter revealed that regulators have sent letters to some companies, noting that significant increases in trading volume and stock prices prior to the announcement of their plans to purchase crypto assets may indicate violations of Regulation Fair Disclosure (Reg FD), which prohibits companies from selectively disclosing material, non-public information to individual investors. Lawyers say such letters often signal the possibility of further investigations into insider trading. (Wall Street Journal)