How Do Traditional Options Market Regulations on Front-Running Compare to Crypto Rules?

In traditional options markets, front-running is strictly illegal and defined as a broker or market maker using non-public client order information to trade ahead of the client for profit. Regulations are well-established, enforced by bodies like the SEC and FINRA, with severe penalties.

In the crypto space, particularly on DEXs, front-running often exploits the public visibility of pending transactions in the mempool, which is a technical vulnerability rather than a breach of confidential information. Crypto regulation is still evolving, with frameworks like MiCA starting to address market abuse, but the technical nature of DEX front-running requires novel, on-chain solutions.