U.S. regulators target encryption reserve companies, QMMM and SDM have been suspended.

The SEC ( and the FINRA ) have launched investigations into over 200 publicly listed companies that announced "encryption financial" strategies, with a few stocks experiencing abnormal price surges before the announcements, raising suspicions of insider trading or violations of the fair disclosure rules ( Reg FD ). Meanwhile, trading has been suspended for the stocks of two digital asset finance companies QMMM and SDM.

U.S. regulators are targeting encryption reserve companies, suspecting insider trading.

The Wall Street Journal reported last week that the SEC and FINRA have launched investigations into more than 200 public companies that announced "encryption financial" strategies, among which a few stocks experienced unusual price surges prior to the announcement. The investigation primarily focuses on suspicious trading trends in the days or weeks leading up to the news disclosure, such as sudden spikes in stock prices and surges in trading volume, which may indicate insider trading or violations of fair disclosure rules (Reg FD).

QMMM and SDM have been suspended.

According to a report by Bloomberg, the SEC has suspended stock trading for two digital asset financial companies (DAT) QMMM and SDM.

QMMM Holdings Limited ( stock code QMMM) is a digital media advertising company headquartered in Hong Kong, primarily providing interactive design, animation, art technology, and virtual technology services. QMMM announced in early September the establishment of a cryptocurrency treasury with an initial scale of 100 million USD, targeting Bitcoin, Ethereum, and Solana (SOL) as its initial goals. Its stock price skyrocketed from around 10 USD to 300 USD, with an increase of up to 29 times.

The SEC has suspended trading of QMMM stock, stating that tweets recommending the purchase of QMMM stock by "unknown individuals" on social media may have manipulated the stock price. The SEC indicated that this suspension is temporary and will end at 11:59 PM Eastern Time on October 10.

The SEC also suspended trading of Smart Digital Group Ltd. stock code SDM( on Monday for similar reasons. SDM is a digital marketing company based in Singapore that completed its IPO in May 2025. Last week, it announced plans to establish a diversified encryption asset pool, with a strategic focus on investing in cryptocurrencies such as Bitcoin and Ethereum. However, this seems to have raised concerns among investors, leading to a nearly ninety percent drop in stock price. The suspension of SDM also ended at 11:59 PM Eastern Time on October 10.

This article discusses how US regulatory agencies are targeting encryption reserve companies, QMMM and SDM have been suspended. It first appeared in Blockchain News ABMedia.