US Regulators Probe 200+ Firms Over Unusual Trading Ahead of Crypto-Treasury Deals

Core Insights - US regulators are investigating over 200 firms with crypto treasuries for potential insider trading activities [1][2][3] - The investigations were prompted by unusual trading volumes and significant stock price increases prior to public announcements [1][3][4] Regulatory Concerns - The SEC and FINRA have raised alarms regarding potential violations of Regulation Fair Disclosure, which prohibits selective sharing of nonpublic information [4] - Companies engaging in large cryptocurrency purchases are required to have outside investors sign non-disclosure agreements, but stock price spikes suggest possible breaches of confidentiality [5] Corporate Crypto Strategies - Data indicates that 108 companies currently hold Bitcoin, with many expanding their treasuries to include altcoins like Ethereum, Solana, and Litecoin [6] - A "flywheel" strategy is commonly employed, where companies raise capital through debt and equity to finance substantial crypto purchases, creating a feedback loop that can be disrupted by premature information leaks [7][8]