TechFlow news, January 10 — Nick Tomaino, founder of 1confirmation, posted on social media stating that insider trading is not a simple matter of "good" versus "bad." Markets exist to aggregate information into prices, and insider trading is essentially trading based on more accurate information. Allowing such behavior enables prices to converge faster toward true value, thereby benefiting the market as a whole.
Nick pointed out that while the U.S. Securities and Exchange Commission (SEC) currently prohibits insider trading in securities markets—ostensibly to bolster public trust and protect investors—political figures like Nancy Pelosi have still managed to earn $130 million in the stock market over her 37-year political career. He added that the Commodity Futures Trading Commission (CFTC) maintains a relatively lenient stance on insider trading in commodity and futures markets, unless such activity is deemed fraudulent or manipulative. The development of prediction markets will depend on whether market participants can trade more intelligently and achieve a balance between free markets and market trust.
