Coinbase CEO Brian Armstrong has drawn a firm line in the sand, announcing the crypto exchange has severed ties with law firms employing former U.S. Securities and Exchange Commission officials who led what he described as a campaign to “unlawfully kill” the crypto industry.
“We’ve let all the law firms we work with know that if they hire anyone who committed these bad deeds in the (soon to be) prior administration, we will no longer be a client of theirs,” Armstrong wrote on X on Monday.
The crypto bull pointed specifically to Milbank, a global law firm headquartered in New York that recently hired Gurbir Grewal, the former head of the SEC’s Division of Enforcement, as a partner.
Grewal oversaw a surge in regulatory actions against crypto firms during his time at the SEC, including lawsuits against Coinbase and Binance.
Armstrong didn’t mince words about the decision: “Milbank recently messed up and hired Gurbir. We don’t work with them now (and never will while he works there).”
“It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules,” Armstrong continued, referring to what he perceives as unjustified actions by the SEC during Grewal’s tenure.
The SEC initiated over 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 overreach and highlighted the lack of clear rules for the industry. “If you were senior there, you cannot say you were just following orders. They had the option to leave the SEC, and many good people did,” he stated.
The Coinbase CEO also stressed that while he does not believe in permanently ostracizing individuals, the crypto industry should avoid supporting firms that employ figures who worked against the sector.
“Let your law firms know that hiring these folks means losing you as a client,” he urged the crypto community.
The crypto mogul’s remarks come as the SEC itself is set for significant leadership changes.
Chair Gary Gensler, who has faced criticism for his enforcement-heavy approach to crypto regulation, announced his resignation effective January 20, 2025, the day President-elect Donald Trump is sworn in.
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 toward a more pro-crypto direction.
Edited by Sebastian Sinclair