BlockBeats News, September 26th, According to WSJ report, sources familiar with the matter revealed that U.S. financial regulators have initiated investigations into unusual trading patterns by companies attempting to make cryptocurrency purchases a core part of their corporate strategy.
The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority have contacted some of the 200-plus companies that announced this year they would adopt a cryptocurrency reserve strategy, expressing concerns in letters sent to the companies a few days before public announcements about unusually high trading volumes and sharp increases in stock prices.
Officials warned the companies that they may have violated the Fair Disclosure Rule. Lawyers indicated that such letters often signal the start of a deeper investigation into insider trading. Companies announcing cryptocurrency reserve strategies have been plentiful in the past few months, with their strategies mirroring that of Strategy (MSTR.O), raising funds through stock and bond offerings to purchase Bitcoin and other digital tokens.
