Is this insider trading according to the law? Nonpublic information isn't being used to trade public stocks; it's being used to trade assets that don't appear to be regulated securities.
It feels like there should already be rules in place to handle if, for example, an Amazon exec went and bought property around an area prior to Amazon announcing their new HQ.
One solution is to go a step up the meta. Ban trading for certain groups or classes, like banning parliamentarians and government officials. ..but spouses, kids, friends and cousins make for a pretty substantial loophole.
That said, not regulating against insider trading bleeds very quickly into market manipulation and corruption.
Not sure what the ansers are. This is a very dirty part of the game game. Crypto brings in a new set of players, and it takes years before they'll learn to do this in a way that maintains a stable plausible legitimacy.
We absolutely cannot have second tier people insider trading and rigging markets. It's antistabalizing.
Amazon didn’t, and the coupled sued the condo.
Trying to find the article.
https://www.cnbc.com/2019/02/15/luxury-real-estate-agent-rya...
I feel like this is less someone getting an unfair benefit and more just eager people experiencing at least part of what the regulatory framework is meant to protect them from— which is being taken to the cleaners on the basis of rumours that don't end up panning out.
equities (and some slight case law in the bond markets) have insider trading prohibitions attached, and futures have some newer anti fraud statutes tacked on to them by a different regulatory agency.
The law is not about fairness, but about theft (of inside information). In particular, it is illegal to misappropriate someone else's information you come across to do insider trading for your own benefit. But it is not illegal for someone to use their own information to trade on.
In this case, Coinbase published a list of coins that it might list. As I understand it, it would be illegal if some employee of Coinbase bought these coins prior to the release for his own account (thereby misappropriating the information). But if Coinbase bought them for their account, and then released the list, and then made money on the subsequent rise, that would be perfectly legal.
See for example here:
https://www.bloomberg.com/opinion/articles/2019-03-13/you-ha...
everything old is new again