The Securities and Exchange Commission and the Financial Industry Regulatory Authority have opened investigations into more than 200 public companies that announced crypto treasury strategies this year. Regulators are looking into whether insider trading took place before these announcements, after spotting unusual spikes in stock prices and trading volumes. Some firms saw their shares rise 20 to 40 percent in the days before they disclosed plans to add Bitcoin, Ethereum, or Solana to their balance sheets.
These inquiries focus on whether company insiders, brokers, or vendors shared material nonpublic information before it was released to the public. Regulation Fair Disclosure requires companies to give all investors equal access to information. The SEC and FINRA believe that sudden stock surges and clustered buy orders suggest that not everyone followed this rule. FINRA has also sent letters reminding firms of their Reg FD obligations, often considered the first step before more formal action.
The push by companies to copy MicroStrategy’s approach of holding large amounts of Bitcoin has attracted widespread attention. Corporate crypto treasuries now aim to raise more than $100 billion this year to purchase digital assets. This marks a major shift in how traditional firms view cryptocurrency, as holding coins like Bitcoin or Ethereum is no longer limited to technology-focused startups. GameStop, Trump Media & Technology Group, and SharpLink Gaming are among the companies that regulators flagged for unusual stock activity linked to crypto treasury plans.
The case of Bitmine, a Bitcoin mining company, shows the scale of the problem regulators face. Bitmine announced an Ethereum treasury strategy in late June. Its stock jumped from $4.67 to $46.58 in just a few days, a 1,000 percent increase. Such a rapid climb raised questions about whether the market moved on leaked tips. Other firms, including Sharplink and ETHZila, also saw large stock gains tied to crypto adoption.
The SEC is using market surveillance tools to trace trades back to individuals. This includes checking whether employees or contractors bought stock ahead of announcements. FINRA is also reviewing broker-dealer emails, phone calls, and chat records for signs of leaks. Investigators want to know if brokers or insiders told friends or partners about upcoming news. If proven, this would count as insider trading under securities law.
Public companies exploring crypto treasury strategies see digital assets as a hedge against inflation and a way to diversify reserves. Bitcoin, Ethereum, and Solana remain the top choices for these firms. Supporters argue that adding crypto to balance sheets could strengthen long-term growth, while critics warn that extreme price swings can hurt shareholders. The investigations highlight the tension between innovation in finance and the rules designed to keep markets fair.
This is not the first time regulators have stepped into the space. The SEC has previously investigated token offerings and crypto exchanges. Now it is expanding its focus to corporate treasuries. Officials argue that adopting cryptocurrency does not free companies from traditional securities laws. By raising capital to buy digital assets, firms still fall under the same disclosure and trading rules as before.
The growing interest in crypto treasuries also points to the influence of MicroStrategy, which began buying Bitcoin in 2020. Since then, dozens of companies have followed, from large corporations to smaller firms seeking stock market attention. The SEC and FINRA fear that the rush to announce crypto adoption has created opportunities for insider trading. Stocks linked to these announcements have often moved sharply before the news became public.
At the center of the debate is whether investors received fair treatment. Regulation Fair Disclosure was written to prevent selective leaks that favor some investors over others. When stock prices jump 20 to 40 percent before official announcements, regulators worry that the market is not operating on equal terms. The letters from FINRA serve as warnings, but they could also lead to enforcement cases if evidence supports the claims.
For now, companies remain under review. Regulators continue to collect data and monitor trades. Investors are watching closely, as the outcome could shape how corporate crypto adoption develops. A crackdown might slow the pace at which firms move into Bitcoin, Ethereum, or Solana. On the other hand, clear guidance from regulators could help establish rules for how crypto treasuries should operate.
The stakes are high. With more than $100 billion planned for crypto purchases, the link between Wall Street and digital assets is stronger than ever. Whether insider trading occurred or not, the investigations show that the SEC and FINRA intend to keep a close watch as companies bring cryptocurrency deeper into their balance sheets. Investors, companies, and regulators will all have to navigate this new stage of the market together.
