US regulators have been sounding alarms after a company’s stocks surge ahead of the Cryptocurrency announcement, raising concerns about insider trading and market fairness.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have contacted more than 200 companies that have revealed their cryptocurrency plans this year. Wall Street Journal Reported on Thursday.
This trend has gained momentum since the Trump administration’s executive order established its national strategic Bitcoin reserve earlier this year.
From biotechnology to gaming, over 60 companies launched their Crypto Treasury strategy in 2025, raising more than $20 billion through equity offerings, convertible debt and private placement. Stocks in some companies jump sharply in the days before the public announcement, suggesting potential insider leaks and selective disclosures.
Some well-known cases have caused special scrutiny. Trump Media and Technology Group I saw an extraordinary share swing ahead of May Bitcoin’s fundraising announcement. GameStop’s Stocks rose 40% in three sessions before revealing the $500 million crypto plan.
Biotechnology company Mei Pharma and Small-Cap Sharplink Games It also reported a sharp rise in advance announcements, urging regulators to investigate potential violations of disclosure rules.
The pre-announcement trading spikes raise red flags about market fairness and potential insider trading. Regulators can respond with investigations, warnings or enforcement actions.
The move reportedly led some companies to begin buying back shares through debt funds as market value declines.
Why is this important?
The SEC and FINRA movement highlight the growing scrutiny of corporate crypto disclosure at a time when investors are increasingly focusing on digital assets as part of their corporate strategy.
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People ask:
Corporate Crypto refers to companies that hold cryptocurrencies such as Bitcoin and Ethereum as part of their financial or investment strategy, as well as cash and traditional assets.
Companies pursue corporate crypto to diversify assets, potentially benefit from hedging against inflation and long-term digital assets valuation.
These occur when a company’s stock price moves significantly before an open announcement.
Insider trading occurs when someone buys or sells stocks of a company based on confidential, private information, giving it an unfair advantage.
Violations can lead to fines, bans in transactions, and criminal charges, depending on the seriousness of the violation.