That's what I meant by "other appropriate agency." Bitcoin must fall under the purview of a regulatory agency. I meant actual laws -- not a stated position which can be reversed.
But if that 'other agency' does not have laws on the books that pertain to front-running, etc etc, then it is not illegal. And only FSA would have those laws. Does that make sense?
In the U.S., Bitcoin is regulated under FINCEN (MSB). They have no avenue to regulate front-running or insider trading. Insider trading in Bitcoin is 100% legal. If it were regulated by the SEC it would be illegal.
I'm not an attorney; this is not legal advice.