Coinbase CEO Brian Armstrong has announced that the cryptocurrency exchange will sever ties with law firms that hire former government officials who have taken anti-crypto stances during their tenure in the Biden administration.
The declaration came after New York-based law firm Milbank hired Gurbir Grewal, the former head of the SEC's Division of Enforcement, as a partner. Armstrong confirmed that Coinbase has already terminated its relationship with Milbank due to this hiring decision.
"It's an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules," Armstrong stated on X (formerly Twitter). He emphasized that senior officials cannot simply claim they were "following orders."
During Grewal's three-year tenure at the SEC, he oversaw more than 2,400 lawsuits and authorized over 100 enforcement actions against crypto firms, resulting in civil penalties exceeding $20 billion.
Armstrong called on other crypto industry players to take similar action, suggesting they inform law firms that hiring anti-crypto officials would result in lost business. However, he clarified that he does not support "permanently cancelling people" and believes these individuals should seek employment in other fields.
The stance comes amid ongoing tension between Coinbase and the SEC. In March 2023, the SEC notified Coinbase of potential enforcement action for alleged securities law violations, leading to a lawsuit in June 2023.
The crypto industry has faced increased regulatory scrutiny under the Biden administration, with enforcement actions against crypto firms resulting in settlements worth $19.45 billion as of October 2024, marking a 78.9% increase from the previous year.