Howard Fischer is quoted in an article titled, "SEC crypto treasury probe frozen by shutdown, but subpoenas could fly soon after government reopens."

A historic U.S. government shutdown has temporarily halted the Securities and Exchange Commission’s (SEC) investigation into publicly listed companies that adopted digital asset treasury (DAT) strategies, including purchases of Bitcoin, Ethereum, and other cryptocurrencies.

The probe, which centers on potential insider trading and violations of Regulation Fair Disclosure, began shortly before the shutdown. With less than 10% of SEC staff currently active, the inquiry is on hold, but former SEC lawyers anticipate it will resume swiftly once the government reopens, possibly leading to subpoenas within months.

Howard noted that regulators are analyzing unusual trading activity prior to public disclosures of companies’ crypto strategies: “They say: ‘'Let's take a look at this because it looks like before the information was released to the general public, about the adoption of a digital asset treasury strategy, there was anomalous trading in the equities of this company.’”

Fischer also noted the wide range of parties the SEC could examine: “It could be insiders at the company. It could be people outside the company. It could be people who are approached to finance these transactions. There’s a whole host of people who they could be looking at.”

On how the SEC analyzes trading data, Fischer added: “If you look at a chart of average daily volume before they announce this kind of activity, there’s a huge spike… so clearly someone knew what was going to happen or predicted it based on other information and purchased the securities in anticipation of that market move.”

He further explained the investigative process once subpoenas are issued: “They’ll likely ask to see phone, email, text, and social media communications. Then, after testimonies are taken, the SEC would probably determine whether there is enough evidence to move forward with recommending charges and issuing a Wells notice.”

Once the SEC resumes full operations, companies’ responses to earlier information requests will determine whether the agency proceeds with subpoenas and potential enforcement actions. The case underscores regulators’ growing focus on how companies disclose and manage information related to digital asset holdings amid evolving market and political dynamics.