The sudden stock price spike ahead of crypto-related disclosures has attracted the attention of US regulators and has deepened concerns about potential market manipulation.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are reportedly considering trading patterns for companies that have revealed digital assets purchases this year. According to the Wall Street Journal, authorities contact more than 200 companies to assess whether sensitive information is being shared inappropriately before its public announcement. Regulators are warning businesses about potential violations of disclosure rules, focusing on selective communication of market-sensitive details. Many companies adopting cryptocurrency strategies were influenced by previous micro-tactics that began accumulating Bitcoin in 2020. At the heart of the investigation is the sudden stock movement ahead of the announcement of cryptocurrency acquisition, causing suspicions of insider trading and regulatory independence.
