Let's say I own a popular Twitter account with millions of followers. Would it be legal according to US law to engage in blatant market manipulation designed to trigger the price of Bitcoin to go up or down? Or is it limited to stocks, securities and other regulated assets?

  • 1
    Part of the trouble with this, apart from lack of enforcement of regulations writ-large, is simply that there is a level of obfuscation that disconnects bitcoin accounts from their real-person identities [though that is not impossible in all cases], and that ultimate accounts may be owned by non-US persons. This severely impedes both investigation and prosecution. – Grade 'Eh' Bacon Feb 1 at 18:41

Yes. It applies to securities through section 9(a)(2) of the securities act, to commodities like bitcoin through 13(a)(2) of the commodities act, and everything else through broad, generic Federal fraud statutes.

"It shall be a felony punishable by a fine of not more than $1,000,000 or imprisonment for not more than 10 years, or both, together with the costs of prosecution, for: .. Any person to manipulate or attempt to manipulate the price of any commodity in interstate commerce ... or knowingly to deliver or cause to be delivered for transmission through ... means of communication false or misleading or knowingly inaccurate reports ... that affect or tend to affect the price of any commodity in interstate commerce[.]" -- 7 USC 13(a)(2)

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.