In a recent announcement, Coinbase CEO Brian Armstrong revealed that the exchange will be cutting ties with law firms that employ former regulatory officials involved in what he deems as “unlawful” actions against the crypto industry. This decision comes after news broke that former SEC Division of Enforcement Director Gurbir S. Grewal had joined Milbank’s Litigation & Arbitration Group, prompting Armstrong to specifically call out the firm as one that Coinbase will no longer be working with.
Armstrong took to social media on Dec. 3 to express his stance on the matter, stating, “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.” He criticized senior partners at law firms for being out of touch with the crypto industry’s perspective on the issue and singled out Grewal for his role in what he deemed as regulatory actions that constituted an “ethics violation.”
According to Armstrong, the prior SEC administration under Gary Gensler had unfairly targeted the crypto industry without providing clear guidance on compliance. He emphasized that individuals who were involved in harming the sector should not receive financial support from the industry. While he does not believe in “permanently canceling people,” Armstrong urged the crypto community to inform their law firms that hiring such individuals would result in losing them as clients.
Milbank, the law firm in question, has yet to respond to requests for comment on the matter. This move underscores the ongoing tensions between the crypto industry and regulators, with Coinbase being at the forefront of legal and policy battles. Armstrong has consistently advocated for clearer guidelines to promote innovation in digital assets.
Grewal’s transition from the SEC to private practice reflects a broader trend of regulators moving into legal advisory roles within the industries they once regulated. His tenure at the SEC coincided with heightened enforcement actions against crypto platforms, including lawsuits against Coinbase and other companies.
Overall, the decision by Coinbase to sever ties with law firms hiring former regulatory officials involved in what Armstrong considers as “unlawful” actions demonstrates the industry’s commitment to holding individuals accountable for their actions. This move highlights the importance of ethical conduct and transparency in the rapidly evolving crypto landscape.