SEC and FINRA Launch Joint Investigation into Unusual Trading of Crypto Asset Treasury Strategies Prior to Announcement

1. Event Overview: Regulators Launch Investigation into Unusual Trading Prior to Crypto Treasury Strategies

On September 26, 2025, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) jointly announced investigations into at least 15 U.S.-listed companies, focusing on unusual stock trading activities that occurred before these companies publicly announced the inclusion of bitcoin and other crypto assets in their corporate treasury reserves. This action is a direct regulatory response to the wave of approximately 200 companies disclosing similar crypto asset allocation strategies since 2025. Preliminary indications suggest that some companies experienced abnormal fluctuations in stock trading volume and price within 24 to 48 hours prior to their announcements, raising serious concerns about insider information leaks or potential market manipulation. This investigation marks regulators' active intervention at the intersection of crypto assets and traditional financial markets, aiming to uphold market fairness and compliance with information disclosure standards.

2. Investigation Background and Motivation: Regulatory Follow-up Amid Corporate Crypto Asset Allocation Boom

The launch of this investigation is rooted in the rapid development of enterprise-level crypto asset allocation. Inspired by industry pioneers such as MicroStrategy, approximately 200 listed companies announced the inclusion of crypto assets in their treasury management strategies in the first three quarters of 2025, involving a total estimated scale of over $15 billions, a significant increase compared to the same period in 2024. While this trend reflects increased institutional acceptance of crypto assets, it also brings new regulatory challenges.

The market surveillance systems of the SEC and FINRA detected clear abnormal patterns in the stocks of some companies prior to major strategic announcements, such as trading volumes surging 2 to 5 times and sharp price fluctuations within a short period. These patterns strongly suggest the possible misuse of non-public information, prompting regulators to take action to prevent manipulative behaviors such as "announcement pumping" that could undermine market integrity and investor interests.

3. Investigation Methods and Involved Cases: Data Tracing and Suspicious Pattern Analysis

The investigation combines advanced technological tools with traditional inquiry procedures. Regulators are using AI algorithms to deeply analyze the detailed paths of unusual trades, aiming to identify potential connections between trading parties and check for signs of company insiders, major shareholders, or affiliates trading before information is announced. At the same time, the SEC and FINRA have sent formal inquiries to the involved companies, requiring them to provide detailed trading records for specific periods, communication records of internal decision-making processes (such as emails and instant messages), and key evidence such as board meeting minutes.

Public information shows that the investigation involves several typical cases. For example, a tech startup saw its stock price rise abnormally by about 15% on the trading day before announcing a $100 millions bitcoin purchase. Such cases have become typical samples for investigators analyzing "suspicious patterns."

Data sources: SEC EDGAR, Yahoo Finance, FINRA Bulletin, CoinDesk

4. Market Reaction and Industry Commentary: Short-term Volatility and Long-term Compliance Expectations

After the news was released, the market responded quickly. The stock prices of companies directly involved in the investigation generally came under pressure, with an average drop of about 5%, and this also affected the broader crypto asset concept stocks to some extent. Related discussions on social media surged, reflecting the market's high attention to this event.

Some investors are concerned that the investigation may dampen companies' enthusiasm for disclosing crypto asset strategies in the short term, or even lead to delays in related investment plans. However, many industry experts and compliance analysts take a longer-term view, believing that this move is a necessary step toward market maturity. Although clear regulatory scrutiny brings short-term pain, it helps establish clearer information disclosure norms and internal compliance standards. In the long run, this will enhance the trust of traditional institutional investors in the entire crypto asset sector and pave the way for broader adoption.

5. Future Impact and Industry Outlook: Standardization of Information Disclosure and Evolution of Regulatory Framework

This joint investigation is expected to have a profound impact on future information disclosure and compliance practices related to corporate crypto asset activities. Regulators are likely to take this opportunity to further clarify or revise relevant rules, such as considering requiring companies to reserve a longer "quiet period" before releasing such major strategic announcements or to pre-report trading surveillance data, in order to strengthen preemptive supervision.

At the industry level, this event will prompt all companies considering or already implementing crypto asset treasury strategies to re-examine and strengthen their internal information control mechanisms to ensure compliance with securities regulations. Although stricter compliance requirements may initially increase operational costs for companies, establishing a transparent and predictable information disclosure environment is the cornerstone for crypto assets to truly integrate into mainstream corporate treasury management and institutional investment portfolios. This action clearly demonstrates that while the crypto asset market is developing rapidly, the regulatory bottom line of maintaining market fairness and the rule of law cannot be breached.

Join our community to discuss and grow stronger together!