US insider trading rules will clash with deregulation
Subject Salman v United States. Significance The Supreme Court ruled in Salman v United States on December 6 that inside traders may still be liable for insider trading crimes even when no actual quid pro quo exchange between insiders took place. This ruling rejected an earlier interpretation by the US Court of Appeals in New York, which threatened to make prosecutions for insider trading more difficult. This decision comes as the incoming administration of President-elect Donald Trump pledges to overhaul the financial regulatory efforts of the Obama administration, a politically fraught proposition. Impacts The Trump administration may pursue selective enforcement of financial wrongdoing without accompanying structural reform. The Democrats will seek to build a narrative of a ‘business-as-usual’ Republican government in response to its deregulation push. New York state and local officials’ regulatory clout over the financial sector will give them national and international influence.