US regulators probe crypto investment firms for insider trading

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are investigating potential insider trading in the stocks of companies that have adopted cryptocurrency treasury strategies, the Wall Street Journal reported. The authorities have sent letters to some of the roughly 200 companies that announced such strategies, expressing concern over surges in trading volume and stock prices immediately preceding the public disclosures. The letters also warned of possible violations of fair disclosure rules. Industry observers view the move as the beginning of a full-scale regulatory probe into insider trading.