Still, please ask the SEC to team up with the FBI, or perhaps add a disciplinary committee, to investigate insider trading. Just pull everything out for you. The self-examination will ultimately just be a formal document!

So, is it applicable?

The SEC has explicitly applied the insider trading rules of the traditional securities market to virtual currency transactions it deems to be securities. Major cases include:

· Coinbase Insider Trading Case (2022): This is the SEC's first enforcement action against insider trading on a cryptocurrency trading platform.

· Facts: A former product manager at Coinbase, along with his brother and friends, used significant non-public information about which crypto assets would soon be listed for trading on Coinbase to buy the assets in advance, then sold them for profit after the announcement when prices rose.

· SEC's Allegations: The SEC believes that these soon-to-be-listed crypto assets are considered "securities," and thus this conduct violates Section 10(b) of the Securities Exchange Act and Rule 10b-5.

· Significance: This case clearly conveys the SEC's stance—trading tokens deemed to be securities on an exchange (even a cryptocurrency exchange) subjects insider information (such as listing announcements) to securities law.

In the context of cryptocurrency exchanges, behaviors that may constitute insider trading include but are not limited to:

· Exchange Employees: Trading based on significant non-public information about upcoming listings of certain tokens, delistings of certain tokens, changes in trading rules, system upgrades, etc.

· Core Members of the Project: Buying and selling a token before significant positive or negative news about that token (such as technological breakthroughs, major partnerships, regulatory issues) is made public.

· Third Parties Receiving Information Leaks: Trading based on information obtained from the aforementioned internal personnel.