Coinbase has ended its relationship with law firm Milbank after it hired former SEC Enforcement Director Gurbir Grewal, who led more than 100 lawsuits against the digital asset industry.
Coinbase CEO Brian Armstrong announced on December 3 that the cryptocurrency exchange will no longer work with law firms that recruit individuals who were involved in anti-cryptocurrency actions during their time in government. The move comes after Milbank law firm hired Gurbir Grewal, the former Director of Enforcement at the U.S. Securities and Exchange Commission (SEC).
Coinbase's decision reflects growing tensions between the cryptocurrency industry and regulators, especially the SEC. Armstrong said it was a negative move for law firms to hire officials who have previously taken a hard line on cryptocurrencies and urged the cryptocurrency community not to support these individuals.
He argued that senior partners at law firms are often unaware of the cryptocurrency industry’s perspective and encouraged the community to inform law firms that hiring anti-crypto officials could lead to losing clients.
Source: Brian Armstrong Escalating Tensions Between Coinbase and the SEC
Coinbase ended its relationship with Milbank after the law firm announced Grewal’s hiring on October 15. The SEC announced Grewal’s resignation on October 2. During his tenure, Grewal initiated more than 100 enforcement actions to address what the SEC called “widespread violations” in the digital asset industry. Milbank, in a press release announcing Grewal’s hiring, praised his “successful track record” as a federal prosecutor and SEC enforcement director.
However, Armstrong said that Grewal's hiring was unacceptable. He stressed: "If you're a senior partner there, you can't say you're just following orders. They have the option to leave the SEC and a lot of good people have done that. That's not a normal tenure at the SEC." Armstrong's statement reflects his displeasure with the SEC's approach to the cryptocurrency industry, arguing that the agency has been too harsh and has not created a clear regulatory framework.
The incident comes amid positive developments in the cryptocurrency market. Following Donald Trump's victory in the 2024 US presidential election, the cryptocurrency community expressed optimism about a more favorable regulatory environment in the US. This contributed to the bullish momentum in the market, with Bitcoin hitting a record high of $99,645 on November 22.