Coinbase strongly opposes legal firms that hire former U.S. SEC officials with experience in regulatory lawsuits against the crypto industry. The company has previously refused to collaborate with SEC alumni.
CEO Brian Armstrong has made it clear that Coinbase would sever ties with any individual who attempted to “unlawfully destroy” the cryptocurrency sector while working for the SEC.
Specifically, Armstrong addressed Milbank, an international law firm that recently hired Gurbir Grewal, the former head of the SEC’s Division of Enforcement.
Armstrong emphasized Coinbase’s stance on not working with professionals who have taken actions detrimental to the crypto industry during their tenure at the SEC.
Milbank’s hiring of Gurbir Grewal draws criticism
The crypto world has raised concerns over Milbank’s decision to hire Gurbir Grewal as a partner. Grewal, a key figure in the SEC’s crackdown on cryptocurrency companies, spearheaded actions against major players like Binance and Coinbase.
During his two-year tenure, Grewal oversaw the SEC’s filing of more than 100 enforcement actions. However, Armstrong criticized the SEC’s aggressive enforcement tactics, pointing out the lack of clear regulatory guidelines for the crypto industry.
Armstrong’s comments send a strong message to law firms: hiring individuals tied to controversial SEC actions could lead to a loss of Coinbase’s business.
Ethics and accountability in crypto regulation
Armstrong also stressed the ethical burden this places on the SEC under Grewal—actions not taken with any transparency. That, he said, was because senior SEC officials had the opportunity to leave when they disagreed with the direction the agency was taking, though some did.
Armstrong also stressed the ethical burden this places on the SEC under Grewal—actions not taken with any transparency. That, he said, was because senior SEC officials had the opportunity to leave when they disagreed with the direction the agency was taking, though some did (ethical burden SEC under Grewal).
Coinbase has enhanced its focus on personal accountability with Armstrong calling out former SEC officials to try their luck elsewhere as they shouldn’t be enabled by the crypto community given their roles in regulatory overreach.
SEC’s Upcoming Leadership Changes
Armstrong’s remarks come on the heels of SEC leadership changes. The current chairman of the SEC, Gary Gensler, will step down in Jan. 2025, as will Commissioner Jaime Lizárraga.
The agency states that President-elect Donald Trump, during the transition, will get to name new SEC members who could lead to new directions on crypto regulation.
These moves could indicate a shift in how the SEC pursues enforcement action in this space should it change course, but crypto is still cautious on how past enforcement actions are marked.
Related Reading | Ex-Bitwise CEO warns against inflated crypto listings
