In summary
- Brian Armstrong announced that Coinbase will stop working with law firms that hire former SEC officials involved in adverse crypto regulations.
- Milbank lost Coinbase as a client after hiring Gurbir Grewal, former SEC Compliance Chief, accused of leading regulatory actions against crypto.
- Armstrong urged the crypto ecosystem to boycott firms that support figures who worked against the industry, criticizing the SEC’s lack of clear rules.
Coinbase CEO Brian Armstrong has drawn a firm line in the sand, announcing that the Cryptocurrency exchange has cut ties with law firms that employ former U.S. Securities and Exchange Commission (SEC) officials who led the which he described as a campaign to “illegally kill” the crypto ecosystem.
“We have informed every law firm we work with that if they hire anyone who committed these wrongdoings in the previous (soon-to-be) administration, we will no longer be their client,” Armstrong wrote in X on Monday.
The cryptocurrency enthusiast specifically pointed to Milbank, a New York-based global law firm that recently hired Gurbir Grewal, the former head of the SEC’s Enforcement Division, as a partner.
Grewal oversaw a surge in regulatory actions against cryptocurrency companies during his time at the SEC, including lawsuits against Coinbase and Binance.
Armstrong didn’t mince words about the decision: “Milbank recently made a mistake and hired Gurbir. We don’t work with them now (and never will as long as he works there).”
“It’s an ethical violation in my book to try to illegally kill an industry while refusing to publish clear rules,” Armstrong continued, referring to what he perceives as unwarranted actions by the SEC during Grewal’s tenure.
The SEC initiated more than 100 enforcement actions under Grewal’s leadership, with the former official defending his approach as essential to addressing fraud and protecting investors.
Armstrong, however, criticized this as excess and highlighted the lack of clear rules for the industry. “If you were a senior there, you can’t say you were just following orders. They had the option to leave the SEC, and a lot of good people did,” he said.
The Coinbase CEO also emphasized that while he does not believe in permanently ostracizing individuals, the crypto ecosystem should avoid supporting firms that employ figures who worked against the sector.
“Let your law firms know that hiring these people means losing them as a client,” he urged the crypto community.
The cryptocurrency magnate’s statements come as the SEC itself is about to undergo significant changes in its leadership.
Chairman Gary Gensler, who has faced criticism for his compliance-focused approach to crypto regulation, announced his resignation effective January 20, 2025, the day President-elect Donald Trump takes office.
Adding to the leadership exodus, SEC Commissioner Jaime Lizárraga also announced his resignation, effective January 17, 2025, citing personal reasons.
Although bipartisan rules require at least one Democratic commissioner, Trump will have the opportunity to appoint new members, potentially steering the SEC in a more pro-crypto direction.
Edited by Sebastian Sinclair
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