Michaela Alvez
Coinbase CEO Brian Armstrong has warned the company’s law firms that it will sever ties if they hire individuals involved in what he refers to as “bad deeds” against the crypto industry during the Biden administration.
In a post on X, Armstrong noted that some senior law firm partners appear unaware of the growing frustration within the crypto community over regulatory actions that have impacted the industry.
Armstrong emphasized his position by citing Milbank as an example, noting that Coinbase had ended its relationship with the law firm due to their hiring of Gurbir Grewal. He further stated that Coinbase would not work with Milbank again as long as Grewal remained with the firm.
Grewal was the former Director of the U.S. Securities and Exchange Commission’s (SEC) Division of Enforcement. During his time in this role, he was responsible for overseeing the agency’s efforts to protect investors by enforcing securities laws across various sectors, including emerging technologies like cryptocurrency.
Under his leadership, the SEC pursued actions against multiple cryptocurrency platforms for noncompliance, including major cases against companies like Coinbase and Binance.
Armstrong sharply criticized Grewal’s tenure at the SEC, calling it an “ethics violation” for contributing to the stifling of the cryptocurrency industry without providing clear regulations. “If you were a senior there, you cannot say you were just following orders,” Armstrong added.
Crypto Industry Pushback on Regulatory Overreach
Armstrong ended his post with a suggestion that individuals responsible for these “bad deeds” should be removed from influential positions. He encouraged the crypto industry to stop financially supporting those who, in his view, have hindered progress and caused harm to the sector.
Kraken, one of the largest cryptocurrency exchanges in the world, has been vocal about its opposition to what it sees as regulatory overreach by U.S. regulators, particularly the SEC.
In early 2023, Kraken found itself at the center of a regulatory dispute when it agreed to pay a $30 million settlement to the SEC for offering staking services without proper registration.
While Kraken avoided a prolonged legal battle, the company made it clear that it believed the SEC’s actions were overreaching and unfairly targeted the crypto sector.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
