The U.S. SEC and FINRA launch a large-scale investigation: 212 companies' Bitcoin treasury strategies suspected of insider trading.

In early 2025, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) jointly launched an investigation into more than 200 publicly traded companies that announced plans to include Bitcoin and other digital assets in their treasury stock strategies, focusing on the unusual fluctuations in their stock prices prior to significant policy announcements. According to crypto consulting firm Architect Partners, these companies plan to raise approximately $102 billion for crypto assets allocation, but regulators found that most companies experienced a surge in volume prior to information disclosure. This action marks the first large-scale regulatory move after the Trump administration's commitment to providing "clear rules" for the crypto market, indicating that the traditional securities regulatory framework is systematically covering the digital asset space.

###Regulatory Crackdown: Fair Disclosure and Insider Trading Become the Focus of Investigation

The SEC's investigation is based on the Fair Disclosure Rule (Reg FD), requiring companies to clarify whether they selectively leaked information to specific investors before disclosing their stock buyback strategies. Former SEC enforcement attorney David Chase pointed out that the issuance of the investigation notice has triggered a strong market reaction, highlighting the regulator's zero-tolerance attitude toward information asymmetry issues. Notably, the SEC has explicitly stated that it will expand the applicability of traditional broker-dealer recordkeeping requirements (17a-3, 17a-4) in its spring 2025 regulatory agenda, requiring that all orders, custody, and transfers related to Crypto Assets be fully documented to provide a basis for subsequent regulatory enforcement.

###Stock Price Abnormal Fluctuation Case: Eightco Soars 5,600% in a Week

Typical cases show that the publicly listed company Eightco's stock price soared over 5,600% within a few days after announcing plans to increase its holdings in Worldcoin and considering incorporating Ethereum into treasury stock, attracting significant attention from the SEC. According to Stocktwits data, such drastic fluctuations often attract a large amount of short-term speculative funds, but at the same time expose potential insider trading risks. Justin Platt, a partner at the law firm Goodwin, analyzed that while companies can sign confidentiality agreements with external investors, information leakage may still lead to imbalanced transaction pricing and even affect overall strategic execution.

###Regulatory Paradigm Shift: From "Weaponized Enforcement" to "Clarification of Rules"

SEC Chairman Paul Atkins recently publicly criticized the previous leadership's tough regulatory approach to the crypto industry, emphasizing that the new government will be committed to providing a predictable rules framework. This investigation is seen as a key touchstone for regulatory transformation—both to crack down on violations and to clarify operational boundaries for compliant companies. Market analysis suggests that this shift reflects a pragmatic attitude of regulators seeking to balance innovation and risk management against the backdrop of the accelerated integration of crypto assets with traditional finance.

###Market Impact and Compliance Recommendations: Information Disclosure Becomes Key to Business Survival

The survey results are expected to establish baseline standards for the information disclosure timing, synchronization scope, and internal audit processes for the crypto assets treasury stock strategy. Companies that violate Reg FD may face civil fines and even criminal prosecution of executives. If a transaction is determined to involve insider elements, subsequent financing plans may also encounter a crisis of market trust. It is recommended that companies involved in crypto asset allocation establish a proactive compliance review mechanism, especially to strengthen information control before the announcement of significant decisions, and closely monitor the SEC's specific technical requirements for the expanded applicability of Rule 17a-4.

###Conclusion

The joint investigation by the SEC and FINRA marks a new phase in the regulation of digital assets, where fair disclosure and anti-insider trading rules from traditional capital markets are fully permeating the crypto space. For companies, the ability to balance innovative business practices with compliance management will become a key capability for survival in the long run of digital assets. As the regulatory framework becomes clearer, compliance will not only be a legal requirement but will also evolve into a core competitive advantage.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The crypto market experiences significant fluctuations, and investors should make decisions cautiously.