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SEC and FINRA Probe 200+ Firms Over Cryptocurrency Strategy Announcements

SEC and FINRA Probe 200+ Firms Over Cryptocurrency Strategy Announcements

The SEC and FINRA are examining unusual trading activity before the announcement of crypto reserve strategies by over 200 companies, signaling increased regulatory scrutiny on corporate practices.

BTC

Summary

The SEC and FINRA are investigating over 200 companies for unusual trading activity ahead of cryptocurrency reserve strategy announcements, with a focus on potential violations of Fair Disclosure rules. The probes could expand into insider trading investigations, particularly as many firms have followed MicroStrategy’s model of acquiring digital assets through stock and bond issuances.

Terms & Concepts
  • SEC: The U.S. Securities and Exchange Commission, a federal agency overseeing securities markets and protecting investors.
  • FINRA: The Financial Industry Regulatory Authority, a self-regulatory organization that supervises brokerage firms and their registered representatives.
  • Fair Disclosure (Reg FD): A U.S. regulation requiring public companies to disclose material information to all investors at the same time, preventing selective disclosure.