Coinbase CEO Promises to Cut Ties With Law Firms Linked to Biden Admin’s ‘Bad’ Actors

Coinbase CEO Brian Armstrong warned Tuesday that the exchange will cut ties with law firms connected to officials involved in “bad deeds” under the Biden administration.

In a post on X, Armstrong noted that some senior law firm partners are unaware of the crypto community’s anger over the administration’s actions. He warned that if these firms hire those responsible, Coinbase will end their partnership.

Armstrong cited law firm Milbank as an example. The firm recently hired Gurbir Grewal, who left his role as head of the SEC’s Division of Enforcement after three years, as a partner in its New York office. As a result, Armstrong stated that Coinbase has ended its relationship with the firm.

“We don’t work with them now (and never will while he works there),” he said.

“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. They had the option to leave the SEC and many good people did. It was not a normal SEC tenure.”

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.

Senior partners at these law firms seem unaware of the crypto industry's position on this.… https://t.co/k8R6NtfTV1 pic.twitter.com/RT0k408i9f

— Brian Armstrong (@brian_armstrong) December 3, 2024

Critics Slam SEC Era for Hindering Crypto Growth With Broad Securities Rules

While at the SEC, Grewal oversaw hundreds of enforcement actions against the crypto industry. Prominent cases included lawsuits against Coinbase and Binance. The allegations claimed these platforms operated without adhering to federal securities laws, denying investors important protections.

Meanwhile, the industry argued that Grewal and the SEC relied on “regulation by enforcement,” choosing to define industry standards through lawsuits instead of establishing clear regulatory guidelines. Many viewed this approach as excessively punitive and lacking in practical guidance for compliance.

Under Grewal’s leadership, the SEC maintained that many crypto tokens qualified as securities, using the Howey Test as the basis for this classification. However, critics argued that this broad interpretation stifled innovation by failing to account for the varied nature of digital assets.

Coinbase CEO Urges Crypto Leaders to Cut Ties With Firms Hiring Anti-Industry Figures

Armstrong called on his colleagues in the crypto industry to warn law firms that hiring individuals known for anti-crypto policies could cost them future business.

Users on X praised the exec for taking a strong stand in support of the industry, seeing him as a role model. Last month, Armstrong reportedly met with President-elect Donald Trump to discuss possible staffing choices for the new administration.