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The U.S. government shutdown freezes the SEC's cryptocurrency financial investigation, which may quickly issue subpoenas upon resumption

Nov 05, 2025 08:39:44

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The U.S. government shutdown has temporarily frozen the Securities and Exchange Commission (SEC)'s insider trading investigation into Digital Asset Taxation (DAT) strategies.

Several former SEC lawyers have stated that once the government reopens, the regulatory agency will almost certainly restart the investigation, and if suspicious trading patterns are found, subpoenas may be issued within 1-2 months. At the end of September this year, the SEC and FINRA contacted several publicly traded companies that employ cryptocurrency taxation strategies to investigate unusual fluctuations in stock prices and trading volumes. Notably, the Trump family has connections to several DAT companies, including ALT5 Sigma, which holds WLFI tokens, and Trump Media, making this investigation a "sensitive topic."

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