Brian Armstrong, CEO of Coinbase, has issued a strong warning for law firms regarding their employment of former Securities and Exchange Commission (SEC).
Brian Armstrong, CEO of Coinbase, has issued a strong warning for law firms regarding their employment of former Securities and Exchange Commission (SEC) officials deemed hostile to the cryptocurrency industry.
Following the recent appointment of Gurbir S. Grewal, the former SEC Enforcement Director, to Milbank’s litigation and arbitration group, Armstrong announced that Coinbase would sever ties with any legal firm that employs such individuals.
In a post on social media platform X, Armstrong stated, “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 emphasized that Coinbase currently does not and will not work with Milbank while Grewal is affiliated with the firm.
Grewal, in his previous role at the SEC, initiated enforcement actions against several major U.S. crypto firms, including Coinbase, Kraken and Ripple, as well as international companies like Binance.
Under outgoing Chair Gary Gensler, the SEC has intensified its scrutiny of the crypto sector, issuing numerous Wells Notices to various firms and signaling potential enforcement actions.
Armstrong criticized the SEC’s approach, asserting that it is unethical for the agency to impose regulations without clear guidelines. He pointed out that many within the SEC had the option to leave and that those who remained cannot claim they were merely following orders.
Looking ahead, the crypto industry appears optimistic about a more favorable regulatory environment under the Trump administration.
Trump has indicated plans to overhaul the SEC's approach to cryptocurrencies, including a commitment to dismantle what he terms “Operation Choke Point 2.0,” which targets financial services access for crypto businesses.
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