In brief
- The outreach was based on a review of 200+ firms with crypto-treasury plans, but only some were reportedly flagged.
- Regulators are reportedly examining whether leaks or trading on material non-public information may have occurred.
- Observers have warned that poorly timed treasury strategies may appear gimmicky and expose firms to instability.
The Securities and Exchange Commission and the Financial Industry Regulatory Authority have reportedly contacted certain companies after identifying unusual trading activity ahead of their announcements on digital asset treasuries.
The outreach was drawn from a review of more than 200 firms that disclosed crypto treasury strategies this year, though only a portion was flagged, according to an initial report from the Wall Street Journal, citing people familiar with the matter.
Decrypt has reached out to the SEC and FINRA for confirmation.
Described as preliminary, the outreach reportedly followed trails of sharp pri
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Author: Vince Dioquino
