What I'm saying is that it already is the case.
It's not even possible to legally prosecute someone for insider trading because most cryptocurrencies are not securities, and in order for insider trading to occur it has to be a security. The SEC doesn't really care and they are prosecuting people anyway: regulation by enforcement. However the chance that they lose the Ripple lawsuit is significant, and then they will have to seriously consider a new strategy going forward.
Even if insider trading could be legally applied to crypto, we wouldn't want it to be because that means the government is still in control. The entire point of crypto is that it governs itself, so the system isn't working if the government can come in and tell us how to operate.
I'd like you to consider the example I actually gave within the OP.
Don't focus on rug pulls (taking money out of the system), focus on the opposite: pumping money into the system on purpose when you know a wave of FOMO is coming. When you load up on debt and set up a long position right before a token moons, and then pay back the loan at the top and crash the price, that person just siphoned everyone's money into their own pocket who bought at the top. Is that illegal? Or is that just "alpha"? The law clearly implies that it's fair game, and I see no reason to contest that. In fact if they use limit orders to sell instead of market orders, theoretically no one loses any money in that moment and the seller is just supplying the demand that they correctly predicted.
Lol, okay in that case I see your point. We are all just speculators in the market anyway and the people pumping money into the market may still end up losing if they are not careful. It's sort of like if everybody is doing it...then no one really is doing it. People might get hurt though but who doesn't in this crypto market...
Are we on the same page?