Coinbase CEO to cut ties with firms that hire officials involved in Biden’s war on crypto
Coinbase CEO, Brian Armstrong vows that the exchange will cut ties with firms that hire people linked to ‘bad deeds’ of the Biden Administration following Milbank’s hiring of ex-SEC official Gurbir Grewal.
In a recent X post, Armstrong warned that the Coinbase team will immediately cut ties with law firms that hire people who have committed “bad deeds” against the crypto industry while under the Biden Administration. He believed that law firms are still unaware of the crypto industry’s stance on the previous administration
His declaration followed a recent case where Milbank, a law firm based in New York that Coinbase worked with, hired ex-SEC chief Gurbir Grewal as a partner in its New York office. Gurbir was head of the SEC’s Division of Enforcement for three years before stepping down on Oct. 11.
Armstrong stated that Coinbase has terminated its partnership with Milbank and refuses to work with the law firm for as long as Gurbir is still a partner at their office.
“It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules. If you were senior there, you cannot say you were just following orders,” Armstrong wrote in his post.
Moreover, Armstrong urged other crypto industry players to do the same. He believed that officials who were responsible for trying to destroy the crypto industry should be held accountable for their actions.
“We as an industry should not be putting money in their pocket after the abuse. Let your law firms know that hiring these folks means losing you as a client,” he said, adding that these figures should find work in other fields, as he does not believe in “permanently cancelling people.”
Throughout his tenure at the SEC, Grewal has led the government agency to more than $20 billion in civil penalties and over 2,400 lawsuits.
On the day of Grewal’s departure, the SEC announced that he authorized more than 100 enforcement actions against crypto firms, digital asset operators, and virtual currency purveyors for allegedly breaking federal securities laws.
Coinbase amidst the SEC’s ‘war on crypto’
The SEC under Biden’s Administration has been accused of being fiercely anti-crypto, going so far as waging a “war on crypto.”
Up until October 2024, there have been eight lawsuits with settlements valued at $19.45 billion aimed at crypto firms under the Biden Administration. Compared to last year, the value has increased by 78.9% compared to the previous year.
In March 2023, the SEC sent a notice to Coinbase, informing the exchange that it planned to take enforcement action, alleging the exchange of violating several securities laws. The exchange fired back at the regulator by filing a lawsuit to compel the commission to respond to a request for new rules for the cryptocurrencies. However, the SEC asked the court to dismiss the lawsuit, citing a lack of obligation.
In June 2023, the regulator filed a lawsuit against Coinbase and its related entities, but did not name Armstrong or other executives.
