US market watchdogs are investigating several Digital Asset Treasury Companies following a pattern of unusual trading activity tied to their cryptocurrency acquisition plans, the Wall Street Journal (WSJ) has reported.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are reportedly examining whether these firms, or individuals connected to them, benefited from suspicious trades made before official announcements.
Venture capitalist Mike Dudas described the situation as “a brewing bloodbath,” arguing that this type of enforcement is exactly what the SEC should prioritize to rebuild trust and transparency in digital markets.
Insider trading
According to the report, the investigators believe some investors may have used nonpublic information to buy shares ahead of major crypto-related disclosures, capturing quick gains once the news broke.
Although the specific companies under review remain unnamed, regulators are said to be focusing on abnormally high trading volumes and sudden price jumps that occurred shortly before public statements about corporate crypto purchases.
Such patterns often suggest that insiders, or people with indirect access to sensitive information, could be front-running the market.
In light of these findings, the SEC and FINRA have reminded companies of their duty to disclose market-moving decisions uniformly.
The officials warned that selective communication, or delaying information to investors and analysts, could amount to market manipulation. Firms must therefore ensure that every stakeholder receives equal access to critical details at the same time.
Crypto DATs rises
This increased scrutiny reflects broader efforts to safeguard investors as corporate adoption of digital assets accelerates.
Over the past year, a growing number of firms have added cryptocurrencies to their balance sheets, seeking diversification and exposure to blockchain-linked returns.
Available data reflects the scale of this movement.
Figures from Bitcoin Treasuries show that 194 public companies now hold more than 1 million BTC, valued at roughly $113 billion. Separate data from StrategicETHReserve lists 69 organizations holding 5.26 million ETH worth about $20.6 billion.
Even Solana, traditionally favored by retail users, is seeing significant corporate adoption, with nine entities collectively hold over 13.4 million SOL, representing about $2.6 billion in value.
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