The charges the U.S. Department of Justice and U.S. Securities and Exchange Commission brought against an ex-Coinbase employee on Thursday represent a first for both agencies: insider trading cases involving a cryptocurrency exchange.

The cases are also one of the latest signals that the federal government intends to crack down on misconduct in the cryptocurrency industry. But according to the largest cryptocurrency exchange in the country, securities regulators are going about it wrong, and need to focus on outlining clear rules on crypto securities before resorting to litigation.