How Does the SEC Define Insider Trading in the Context of Crypto Assets?

The SEC applies its existing framework for securities to crypto assets it deems to be securities. Insider trading involves trading a security based on material non-public information (MNPI) in breach of a duty of trust or confidence.

For crypto, this would include an employee of a platform trading a token based on MNPI about a major listing, a partnership, or a large impending order. The challenge is the SEC's ongoing process of determining which crypto assets qualify as securities.