SEC, FINRA probe suspicious stock trades before crypto treasury announcements: WSJ

**SEC and FINRA Launch Investigation into Suspicious Stock Trading Before Cryptocurrency Treasury Announcements**

The Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) are actively investigating suspicious stock trading patterns that occurred before major cryptocurrency treasury announcements, according to a Wall Street Journal report. SEC officials have issued warnings to several companies regarding potential violations of Regulation Fair Disclosure (Reg FD), which prohibits selective disclosure of material information.

This regulatory scrutiny highlights growing concerns about insider trading in the cryptocurrency market, particularly around Bitcoin treasury adoptions and blockchain-related corporate announcements. The investigation targets unusual trading volumes and price movements that preceded public disclosures of cryptocurrency investments by publicly traded companies.

The probe underscores increasing regulatory oversight of the digital asset space as more corporations integrate Bitcoin and other cryptocurrencies into their treasury strategies. Market participants are closely monitoring these developments, as regulatory actions could significantly impact cryptocurrency adoption rates and DeFi market dynamics. This investigation represents another step in the SEC's broader effort to establish clearer compliance frameworks for cryptocurrency-related activities in traditional financial markets.