SEC crypto treasury probe frozen by shutdown, but subpoenas could fly soon after government reopens

The U.S. government shutdown has temporarily halted the Securities and Exchange Commission's (SEC) inquiry into potential insider trading related to publicly listed companies adopting crypto treasuries. Former SEC lawyers anticipate the probe will restart immediately upon the government's reopening, with subpoenas possibly issued within one to two months if the investigation escalates. The inquiry focuses on anomalous trading patterns preceding public announcements about crypto treasury strategies, potentially violating Regulation Fair Disclosure. While FINRA is operational, the SEC is functioning with a skeleton crew, limiting active investigation work. The issuance of subpoenas will heavily depend on how companies respond to initial voluntary information requests; declining these requests can trigger formal subpoenas. Experts note the investigation could target insiders or external parties, and evidence from market activity alone might be sufficient to proceed. The situation is complicated by the fact that some companies involved, like Trump Media & Technology Group Corp., have ties to the current political landscape, making the scrutiny of Digital Asset Treasuries (DATs) a "touchy subject."

(Source：The Block)