SEC and FINRA scrutinize unusual trading ahead of crypto-treasury announcements: WSJ
Regulators scrutinize suspicious patterns in digital asset trading as transparency and oversight concerns intensify.
Key Takeaways
- SEC and FINRA are examining unusual trading patterns before crypto announcements, signaling concerns about market integrity.
- Regulators have queried crypto treasury firms regarding possible violations of fair disclosure rules involving material nonpublic information.
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SEC and FINRA have scrutinized unusual trading before crypto-treasury announcements, according to the Wall Street Journal. The regulators have reached out to crypto treasury companies regarding potential Regulation Fair Disclosure violations.
The scrutiny focuses on suspicious trading patterns that preceded official market disclosures. FINRA, a self-regulatory body overseeing brokers, has contacted some companies as part of its review, a step that can precede insider trading inquiries.
The regulator’s outreach reflects growing concern over how material information is shared before market disclosures.
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