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

Coinbase CEO Brian Armstrong issued a strong warning on Tuesday regarding the company’s future relationships with law firms associated with officials he deems responsible for “bad deeds” under the Biden administration. In a post on X, Armstrong expressed concern that some partners at these firms do not understand the frustration of crypto enthusiasts regarding the administration’s regulatory actions.

Key Points from Armstrong’s Statement

• Termination of Relationships: Armstrong stated that if law firms employ individuals responsible for actions against the crypto industry, Coinbase will sever ties with them. He specifically cited the law firm Milbank, which recently hired Gurbir Grewal, a former director of the SEC’s Division of Enforcement. Grewal oversaw numerous enforcement actions against crypto entities, including Coinbase and Binance, during his tenure.
  
• Ethical Concerns: Armstrong criticized the ethical implications of hiring individuals who have actively worked to undermine the crypto industry without providing clear regulatory guidelines. He remarked, “It’s an ethical violation to attempt to unlawfully end an industry while refusing to release clear guidelines.”

Background on Gurbir Grewal

Grewal’s role at the SEC involved overseeing enforcement actions that many in the crypto community viewed as overly punitive and lacking clear regulatory frameworks. His tenure included significant lawsuits against major players in the cryptocurrency market, which critics argue stifled innovation and growth within the sector. Under Grewal’s leadership, the SEC classified many cryptocurrencies as securities based on the Howey Test, a decision that has been controversial among industry advocates.

Call to Action for Industry Leaders

Armstrong urged other leaders in the crypto space to reconsider their associations with law firms that hire figures known for anti-crypto policies, warning that such relationships could jeopardize future business opportunities. His stance has garnered support from many in the industry who view his actions as a necessary stand for the future of cryptocurrency.

Industry Reaction

The response from the crypto community has been largely positive, with many praising Armstrong for taking a firm position against what they see as regulatory overreach. His comments come amidst ongoing discussions about how best to navigate the complex regulatory landscape facing digital assets in the U.S.

In recent developments, Armstrong also reportedly met with former President Donald Trump to discuss potential staffing strategies for a future administration, indicating his proactive approach to shaping policy in favor of the cryptocurrency sector.

As the dialogue around crypto regulation continues to evolve, Armstrong’s statements highlight a growing tension between industry leaders and regulatory bodies, emphasizing the need for clearer guidelines and more supportive policies for digital asset innovation.