Jeff Park, a senior executive at Bitwise, wrote that insider trading leading to losses is technically not illegal under US securities laws, because insider trading, as securities fraud, needs to meet the three components of liability, breach of contract and damages. Jeff Park explains that the Securities Exchange Commission's (SEC) definition of insider trading is primarily based on the anti-fraud provisions of the Securities and Exchange Act. Since insider trading is essentially fraudulent in securities trading, if the transaction fails to make a profit, it cannot be proved that it caused actual harm to others. This also explains why civil penalties in insider trading cases are usually calculated based on multiples of "profits earned" or "losses avoided." Jeff Park said that for cryptoassets such as Meme coins, if they are not recognized as securities, insider trading regulations do not apply, but should be regulated from the perspective of market manipulation or fraud.