Coinspeaker Coinbase CEO Draws Line against Law Firms Hiring Ex-SEC Officials
Coinbase CEO Brian Armstrong has taken a firm stand against law firms employing individuals connected to what he described as the “unethical actions” of the Biden Administration.
His statement came shortly after the New York-based law firm Milbank LLP hired former SEC Enforcement Chief Gurbir Grewal as a partner. According to him, Coinbase will no longer deal with any law firm hiring individuals tied to regulatory crackdowns on the crypto industry.
Coinbase Cuts Ties with Milbank LLP
Milbank’s recent addition of Grewal, who led the SEC’s Division of Enforcement for three years, sparked Armstrong’s decision. Grewal was instrumental in overseeing enforcement actions that resulted in billions of dollars in penalties against crypto firms.
Armstrong accused such actions of stifling innovation through unclear and restrictive regulatory measures, asserting that partnering with firms employing individuals involved in these actions would be against Coinbase’s principles.
“It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules. If you were a senior there, you cannot say you were following orders. They had the option to leave the SEC, and many good people did. It was not a normal SEC tenure,” Armstrong wrote in a social media post on X (formerly Twitter).
He confirmed that Coinbase had ended its relationship with Milbank and would not reconsider until Grewal is no longer part of the firm.
Grewal’s Record at the SEC
While at the SEC, Grewal led over 100 enforcement actions targeting crypto firms and secured civil penalties exceeding $20 billion. While some viewed these actions as essential for market integrity, critics in the crypto space, including Armstrong, argue they represent a broader “war on crypto” waged under the Biden Administration.
As of October 2024, enforcement actions targeting crypto firms totaled $19.45 billion in settlements, an almost 80% increase from the previous year. Coinbase itself has faced legal challenges from the SEC, including a lawsuit filed in June 2023 alleging violations of securities laws.
Despite these challenges, Armstrong and Coinbase remain steadfast in their mission to advocate for fair and transparent regulations, pushing back against what they perceive as regulators’ overreach.
Rallying the Crypto Industry
Armstrong has also called on the broader market to follow Coinbase’s footsteps in cutting ties with law firms hiring individuals tied to aggressive regulatory actions.
While Armstrong clarified he does not advocate for permanently canceling individuals, he stressed that those involved in anti-crypto policies should seek employment outside the sector.
“We shouldn’t be funding the very people who tried to dismantle our industry,” he stated, adding that the industry should collectively hold such individuals accountable while continuing to push for fair regulations.
The Coinbase boss had previously warned lawmakers following the November 5 elections that opposing crypto is now a “good way to end your career”.
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Coinbase CEO Draws Line against Law Firms Hiring Ex-SEC Officials