Coinbase CEO Brian Armstrong warned law firms not to hire former staff from the U.S. Securities and Exchange Commission (SEC) whom he views as hostile to the crypto industry.
Armstrong posted on X late Monday, informing law firms that if they engage any former SEC officials who he believes have “committed bad deeds” under the leadership of Gary Gensler and the Biden administration, Coinbase would sever ties with them.
Armstrong highlighted the appointment of former SEC Enforcement Division Director Gurbir S. Grewal as a partner at Milbank law firm in October as a key example. Grewal was involved in several high-profile enforcement actions against crypto firms like Coinbase, Kraken, and Ripple, as well as international entities such as Binance. Armstrong made it clear that Coinbase would not work with Milbank or any firm that hires such individuals.
The Coinbase CEO criticized the SEC’s stance under Gensler, accusing the agency of creating regulatory hurdles that make it impossible for crypto companies to comply. Gensler insisted that most cryptocurrencies qualify as securities, urging firms to register with the SEC, but many in the crypto industry argue that the agency’s rules are outdated and not suitable for the digital asset market.
Armstrong was also frustrated with the SEC’s failure to publish clear rules and labeled the agency’s actions as an “ethics violation” for attempting to undermine the crypto industry without providing proper guidance. He made it clear that while he had no issue with former SEC officials seeking employment elsewhere, the crypto industry should avoid rewarding those who contributed to regulatory overreach during the Biden administration.
In June, Coinbase served Gensler with a subpoena, asking for documents related to certain communications relevant to its ongoing case with the SEC. Initially, the request included statements about crypto from 2017 to the present, which covered the period before Gensler took office in 2021.
The CEO’s statements come amid rising hopes within the crypto industry that the incoming administration of Donald Trump will be more supportive of digital assets. Trump promised to fire Gensler and overhaul the SEC’s approach to crypto, aligning with his broader vision of reducing regulatory barriers for the sector.
