- Armstrong cuts ties with law firms hiring anti-crypto SEC officials.
- Criticizes SEC’s unclear regulations and enforcement actions against crypto industry.
Coinbase CEO Brian Armstrong has announced the crypto exchange will sever ties with any law firms that hire individuals from the U.S. Securities and Exchange Commission (SEC) who are responsible for unclear and harsh crypto regulations. In a recent statement on X, Armstrong emphasized that Coinbase would immediately end relationships with legal partners hiring such individuals.
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.
— Brian Armstrong (@brian_armstrong) December 3, 2024
Senior partners at these law firms seem unaware of the crypto industry's position on this.… https://t.co/k8R6NtfTV1 pic.twitter.com/RT0k408i9f
Armstrong’s comments follow Milbank LLP’s hiring of Gurbir S. Grewal, the former SEC Division of Enforcement Director, who oversaw numerous enforcement actions against the crypto industry. Under Grewal’s leadership, the SEC initiated several high-profile lawsuits, including ones against Coinbase and Binance.
Armstrong condemned the move, calling it an “ethics violation” to target the industry without clear regulations. “It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules,” he stated.
Moreover, Armstrong noted he doesn’t believe in permanently barring people from employment, he urged the crypto industry to stand united by avoiding financial support for firms that employ figures who contributed to what he sees as a campaign against crypto. He added, “Let your law firms know that hiring these folks means losing you as a client.”
Armstrong And Trump Administration
This stance aligns with Armstrong’s broader push for clearer and more supportive crypto legislation. He expressed optimism that the regulatory environment would improve under President-elect Donald Trump, with key crypto bills like the FIT 21 Crypto Bill. And the Clarity for Payment Stablecoins Act poised to reach Congress soon.
Meanwhile, Armstrong’s comments also come amid leadership changes at the SEC. Chairman Gary Gensler and Commissioner Jaime Lizárraga are set to step down in early 2025, with President Trump expected to appoint new SEC members, potentially shifting the agency’s approach toward a more crypto-friendly stance.
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