US regulators are sounding alarms after corporate stocks surged ahead of crypto treasury announcements, raising concerns about insider trading and market fairness.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) contacted dozens of the more than 200 firms that revealed crypto treasury plans this year, the Wall Street Journal reported Thursday.
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The trend has gained momentum since a Trump administration executive order earlier this year established a national strategic Bitcoin reserve.
Over 60 firms, from biotech to gaming, have launched crypto treasury strategies in 2025, raising more than $20 billion via stock offerings, convertible debt, and private placements. Stocks of some companies jumped sharply in the days before public announcements, suggesting potential insider leaks or selective disclosure.
Some high-profile cases have drawn particular scrutiny. Trump Media and Technology Group saw unusual share swings ahead of its May Bitcoin funding announcement, while GameStop’s stock jumped 40% in the three sessions before revealing its $500 million crypto plan.
Biotech firm MEI Pharma and small-cap SharpLink Gaming also reported sharp pre-announcement surges, prompting regulators to examine potential breaches of disclosure rules.
The pre-announcement trading spikes are raising red flags about market fairness and potential insider trading. Regulators could respond with investigations, warnings, or enforcement actions.
Reportedly, the move has prompted some firms to launch debt-funded share buybacks as market values fall, in some cases leaving market values below the worth of their crypto holdings.
Why This Matters
The SEC and FINRA move highlights growing scrutiny over corporate crypto disclosures, and whether market fairness is at risk, at a time when investors are increasingly eyeing digital assets as part of corporate strategy.
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People Also Ask:
Corporate crypto refers to companies holding cryptocurrencies like Bitcoin or Ethereum as part of their treasury or investment strategy, instead of just cash or traditional assets.
Firms pursue corporate crypto to diversify assets, hedge against inflation, and potentially gain from long-term digital asset appreciation.
These occur when a company’s stock price moves significantly before a public announcement, potentially due to insider knowledge of upcoming corporate crypto moves.
Insider trading occurs when someone buys or sells a company’s stock based on confidential, non-public information, giving them an unfair advantage.
Violations can lead to fines, trading bans, and criminal charges, depending on the severity of the breach.
