Welcome to Season 2 of Classroom Insiders, a podcast with Professor Karen Woody and her Insider Trading Seminar students from Washington and Lee University. They explore the arc and evolution of insider trading over the last century. Each episode will feature a discussion between Karen Woody and students about insider trading and regulation. Find out what the future lawyers of the university think about past and current legislation and learn more about this fascinating area of law.
In this episode of Classroom Insider, Professor Woody discusses insider trading with law students Cody and Kevin. The trio takes a deep dive into the SEC v. Wahi case. The case involves the Coinbase crypto trading platform, where insider information about cryptocurrency listings was leaked by an employee to friends, enabling them to trade and profit before the information became public. The discussion underscores the intertwining of classical and misappropriation theories of insider trading, especially in the novel context of cryptocurrencies.
The episode further delineates how the securities regulation landscape is adapting to new financial instruments like cryptocurrencies and NFTs, referencing cases like Chiarella, Carpenter, and Chastain to provide a comparative analysis. The conversation evokes critical thoughts on the SEC’s jurisdiction in crypto markets and whether such activities should be classified under insider trading laws. As the legal boundaries expand, the trio anticipates continuous evolution in regulatory approaches towards insider trading and cryptocurrencies.
Key Highlights
- Case Introduction: SEC vs. Wahi
- Details of the Case
- Legal Theories and Jurisdiction
- Opinions and Takeaways
Resources
