Ishan Wahi, a former Coinbase employee, has reached a settlement with the US Securities and Exchange Commission (SEC) over insider trading charges related to the front-running of token listings.
He agreed to cooperate with the Commission in connection with other related SEC investigations and actions, and to forfeit the money he made from the illegal activity.
The SEC stated that US federal securities laws do not excuse insider trading, even when it comes to crypto asset securities.
Last month, Coinbase filed a lawsuit to receive a response to its petition for crypto-specific rules from the SEC; however, the agency has refused to do so.
Both Chair Gary Gensler and former Chair Jay Clayton have stated that the majority of digital assets are considered securities under U.S. regulations, which subject them to registration and financial disclosure requirements.