U.S. Regulators Investigate Unusual Stock Trades Ahead of Cryptocurrency Purchase Announcements, Reports WSJ

The Wall Street Journal reported on the 26th that the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are investigating suspicious stock trading patterns that occurred before the announcement of cryptocurrency purchases by listed companies. The investigation targets over 200 companies that announced their cryptocurrency reserve strategies this year. Regulatory authorities are focusing on unusual trading patterns such as abnormally high trading volumes and sharp stock price increases just before official announcements. SEC officials are warning companies against the potential violation of fair disclosure rules, which prohibit selectively sharing significant non-public information with certain market participants.