DEX in the City: Why Prediction Market 'Insider Trading' Isn't Illegal — Yet

So something that could get you indicted with respect to insider trading in the stock market can be totally legal in a prediction market. And it's not because If a federal official is trading on an outcome tied to government action because they have classified information or just even any information that the public doesn't have access to, that is monetizing state power. Hi, all, and welcome to Decks in the City where the wallets are cold and the takes are hot. First, we have Jesse, Web three prosecutor turned Web three protector at Ribbit Capital. Hi, everyone. Happy New Year. And Vi from the SEC to Web three. Happy New Year, everyone. It's so good to be back. And I'm your host, Catherine, k k k b, fluent in TradFi and conversant in deep tech over at StarkWare. Before we start a jam packed episode, here's a word from the sponsors that make this show possible. Mantle is launching the global hackathon twenty twenty five to accelerate the New Year. Same extra value meals at McDonald's. So now get two snack wraps, plus fries, and a medium soft drink for just $8. For a limited time only, prices and participation may vary. Prices may be higher in Hawaii, Alaska, and California and for delivery. The future of real world assets. With a $150,000 prize pool backing from a $4,000,000,000 treasury and direct access to Bybit's 7,000,000 plus users, this is the ultimate ecosystem for builders. So before we dive in, remember, as always, we're lawyers, but we're not your lawyers. Nothing you hear on decks in the city is legal or financial advice, and it doesn't create an attorney client relationship. For the fine print, as always, check unchainedcrypto.com. So we have a few different topics today. We're gonna talk about Kenton Nasdaq. We're gonna talk about AI, and we're gonna talk about prediction markets and insider trading. But I wanna dive into Canton. As the, resident TradFi expert host here, although Vee and Jesse are those slouch on TradFi understanding as well, I found this to be really interesting. The Canton network. So I think you guys are aware of it. The listeners, if you're not aware of it, you should be aware of it. I have worked with Canton historically. I really like Simon Latort. He was on the SEC privacy roundtable. There's a lot of really smart people there. But Canton is a a little bit controversial in crypto because okay. What is it? It's a permissioned chain designed specifically for regulated TradFi. It's actually owned by digital asset. I I have to tell you, I think that's that's a very confusing name of an entity. I have always disliked that name, but no offense to Cantata Digital Asset. That name is so confusing. It's owned by Digital Asset Capitalized, which is in turn owned by Don Wilson, the billionaire who started the giant global trading firm, DRW, and they also have a prominent, crypto arm, …