U.S. regulators are investigating potentially suspicious stock trading patterns that occurred before publicly listed digital asset treasury companies (DATs) announced plans to buy crypto, Wall Street Journal reported, citing sources familiar with the matter.
WSJ reported Thursday that the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (Finra) have reached out to some companies among the more than 200 DATs.
The regulatory inquiries focused on unusual trading patterns, including abnormally high trading volumes and sharp stock price increases in the short periods preceding public announcements about crypto purchases, according to the report.
Specifically, SEC officials have cautioned companies about potential violations of Regulation Fair Disclosure. The rule requires that material, non-public information be shared broadly, rather than selectively, with analysts, investors, or other market participants who could potentially benefit from trading ahead of official announcements.
The Block has reached out to the SEC and Finra for further information.
The scrutiny comes amid a surge in corporate interest in crypto treasury strategies, modeled in part on Strategy, the firm that has spent billions acquiring bitcoin since 2020. Such a crypto treasury trend has gained significant momentum in recent months, with companies across various industries announcing plans to acquire crypto as part of their corporate treasuries.
DATs have pulled in more than $20 billion in venture capital funding so far this year, The Block reported last week.
Strategy, led by Michael Saylor, remains the largest public corporate holder of bitcoin, according to Bitcointreasuries data. On Monday, Strategy announced the purchase of another 850 BTC for approximately $99.7 million, taking its total holdings to 639,835 BTC.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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