Coinbase cuts ties with law firms hiring ex-regulators linked to crypto crackdown
Coinbase CEO Brian Armstrong announced the exchange would sever ties with law firms that hire former regulatory officials linked to what he describes as unlawful actions against the crypto industry.
Armstrongs comments, made in a social media post on Dec. 3, follow news that former SEC Division of Enforcement Director Gurbir S. Grewal joined Milbanks Litigation & Arbitration Group prompting the Coinbase CEO to single out the firm as one the exchange would no longer engage with.
Armstrong stated:
Weve 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 criticized senior partners at law firms for being unaware of the crypto industrys position on the issue. He specifically referenced Grewal, accusing him of contributing to regulatory actions that he called an ethics violation.
The Coinbase CEO claimed the prior SEC administration under Gary Gensler had unlawfully targeted the crypto industry while refusing to provide clear guidance on compliance.
Armstrong wrote:
This was not a normal SEC tenure. If you were a senior there, you cannot say you were just following orders. They had the option to leave the SEC, and many good people did.
Armstrong emphasized that while he does not believe in permanently canceling people, the crypto industry should avoid financially supporting individuals he alleges were involved in harming the sector.
He said:
Let your law firms know that hiring these folks means losing you as a client.
Milbank did not immediately respond to requests for comment.
The move highlights the deep-rooted tensions between the crypto industry and regulators. Coinbase has been at the forefront of legal and policy battles, with Armstrong often calling for clearer guidelines to foster innovation in digital assets.
Grewals tenure at the SEC coincided with increased enforcement actions targeting crypto platforms, including high-profile lawsuits against Coinbase and other firms. His move to private practice reflects a broader trend of regulators transitioning to legal advisory roles in the industries they once oversaw.
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Text source: CryptoSlate
