United States V. Blaszczak Brings Insider Trading Law to a Tipping Point

This Note examines the Second Circuit’s decision in United States v. Blaszczak and argues that the court erred in eliminating the personal benefit requirement for insider trading prosecutions under 18 U.S.C. § 1348. The Note contends that the decision departs from established insider trading doctrine, creates an unjustified distinction between civil and criminal enforcement, and increases uncertainty in securities fraud law. It concludes that courts should apply the personal benefit requirement to § 1348 cases and that Congress or the Supreme Court should clarify the statute’s scope.[This abstract was written by Microsoft Copilot, a generative artificial intelligence.]