[chii]

What is the current method that exists which stops CEO/executives from short selling their own company's stock, then driving that company's value down (which is easy to accomplish)?

Why can't that same method be used to prevent or indict gov't insiders who tries to do the same?

[toss1]

That same method is the SEC (Securities Exchange Commission) and is it widely regarded as simultaneously ineffective and heavy-handedly overreaching.

It is an inherently hard problem to identify insider trading when trading securities, or in this case, bets/contracts, doesn't have participant identification and transparency problems

The same solution would be best for both — everyone can trade freely with the sole caveat that all ultimately beneficial owners are fully identified and the trades are transparently published in real-time.

Braying about "free market" when in the actual market players can hide their identities and covertly manipulate it, while having an underfunded agency supposedly tracking them down after the fact, is just a farce.

A solution structured so it naturally and dynamically self-corrects is far better than an enforcement bolted-on after the fact. And yes, there would still be enforcement of requiring transparency to enforce proper identification.