SEC Scrutinizes Potential ‘Reg FD’ Violations in Crypto Treasury Announcements
The Securities and Exchange Commission (SEC) is investigating whether companies improperly tipped off traders before announcing crypto purchases, a potential violation of fair disclosure rules.
Alongside FINRA, the agency has reached out to numerous “digital asset treasury companies” following a review of suspicious pre-announcement stock trading.
The inquiries center on patterns indicative of insider advantage, such as sharp, unexplained price jumps. Regulation Fair Disclosure (Reg FD) mandates that material information be released to the entire public at once, not selectively.
This crackdown comes as more corporations, inspired by pioneers like MicroStrategy, jump on the crypto treasury bandwagon, attracting increased regulatory attention to the practice.
