Coinbase CEO Brian Armstrong has taken a firm stance against law firms that employ individuals previously involved in anti-crypto regulatory actions. Armstrong expressed his concerns through a post on X on December 3, highlighting the cryptocurrency exchange’s decision to avoid partnerships with any law firm that hires former government officials who have actively worked against the crypto sector.
Armstrong emphasized that engaging with such firms could undermine the industry’s progress and contradicted Coinbase’s commitment to promoting a fair regulatory environment for cryptocurrencies. He urged the broader crypto community to withhold support from these individuals who, during their tenure in government, may have attempted to stifle the industry’s growth without providing clear regulatory guidance.
Coinbase Ends Relationship with Milbank
This policy came into sharp focus when Coinbase terminated its relationship with the law firm Milbank. This decision followed Milbank’s employment of Gurbir Grewal, the former enforcement director at the U.S. Securities and Exchange Commission (SEC), known for his stringent stance on digital asset compliance. During his tenure at the SEC, Grewal was involved in recommending over 100 enforcement actions against the crypto industry, which he described as addressing “widespread noncompliance.”
Milbank welcomed Grewal to their litigation and arbitration group on October 15, praising his extensive experience and record of success both as a federal prosecutor and at the SEC. However, Armstrong contends that such a background is precisely what makes Grewal’s presence at Milbank incompatible with Coinbase’s vision for collaboration with legal advisors.
The crypto community has recently been buoyed by Donald Trump’s victory in the 2024 U.S. presidential election, anticipating a more favorable regulatory climate for cryptocurrencies in the U.S. This optimism has been reflected in the markets, with Bitcoin reaching a new all-time high of $99,645 on November 22.
| Date | Event |
|---|---|
| Oct 2 | SEC announces Grewal’s resignation |
| Oct 15 | Milbank hires Grewal |
| Dec 3 | Armstrong announces Coinbase’s new policy on law firms |
Brian Armstrong’s decisive move to cut ties with law firms hiring former anti-crypto regulators signals a significant shift in how leading crypto companies may approach their legal and regulatory strategies. This stance not only seeks to safeguard the interests of Coinbase but also encourages the entire crypto industry to support entities that align with pro-crypto regulatory practices. As the landscape for digital assets continues to evolve, the actions of influential companies like Coinbase could set precedents that shape the industry’s regulatory environment for years to come.
Featured image credit: upklyak via Freepik
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