How Insider Trading Theories Are Expanding Into Prediction and Crypto Markets

Theory Briefing

• The post-Chastain case playbook shows the DOJ applying traditional insider trading theory to NFT and crypto markets for the first time.
• Prediction markets blur the line between information asymmetry and legitimate forecasting, challenging the core logic of insider trading law.
• Expanding misappropriation theory into decentralized markets raises fundamental questions about who owes a duty of confidentiality to whom.