U.S. Regulators Crack Down! Insider Trading Scandal at DAT Sparks Crypto Market Crash

TradingKey – The SEC and FINRA launch investigations into insider trading at DAT firms, a move that may deter speculative inflows in the short term but is essential for long-term market integrity.

On Friday, September 26, panic swept through the crypto market as major tokens broke key support levels. Bitcoin (BTC) plunged 1.9%, falling below $110,000. Ethereum (ETH) dropped 1.51%, losing the $4,000 threshold. Ripple (XRP) sank nearly 3%, breaching $2.80, while Binance Coin (BNB) tumbled nearly 5%, slipping under $1,000.

Top 10 Crypto Price Changes – Source: CoinMarketCap

According to reports, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have opened investigations into suspicious trading patterns at several crypto treasury firms (DAT). These patterns include surging stock volumes and prices just before public announcements of crypto reserves—potentially violating Regulation Fair Disclosure (Reg FD).

While the regulatory probe may hinder short-term growth and speculative capital inflows into DAT firms, it represents a necessary step toward protecting retail investors and ensuring orderly market conduct. In the long run, such oversight could strengthen the foundation for sustainable crypto market development — so panic may be premature.