Key Points:
Coinbase will not work with law firms that hire former SEC officials who have harmed the crypto industry, with Milbank being specifically cited for hiring Gurbir Grewal.
Coinbase CEO takes a firm stance against law firms hiring former SEC officials who harmed the crypto industry. Armstrong declares they won’t work with those who previously enforced restrictive crypto policies.
Brian Armstrong, the CEO of Coinbase, recently outlined the company’s stance on ethics and accountability in its dealings with law firms, particularly those hiring former officials from the U.S. Securities and Exchange Commission (SEC) who have harmed the cryptocurrency industry.
Armstrong emphasized that Coinbase would no longer work with any law firms that hire individuals who have previously committed actions against the crypto industry under the prior administration.
Coinbase CEO Calls for Ethical Practices and Accountability
Coinbase’s CEO clarified that they have communicated to all the law firms they work with that hiring former SEC officials involved in actions detrimental to the crypto industry would result in severed business relationships.
Armstrong asserts that senior partners in these firms seem unaware of the crypto industry’s position and its emphasis on ethical conduct.
They can go work in other areas (I don’t believe in permanently cancelling people), but we as an industry should not be putting money in their pocket after the abuse. Let your law firms know that hiring these folks means losing you as a client.
Armstrong wrote in a post on X.
A specific example Armstrong cites is the law firm Milbank, which, according to him, made a poor decision by hiring Gurbir Grewal, a former SEC official. As a result, Milbank lost Coinbase’s business, and Armstrong suggested that Coinbase would never work with Milbank while Grewal remained employed there.
Read more: SEC Chair Candidate Teresa Goody Guillén Promises to Make Crypto Great Again
Ethics in the Crypto Industry: More Than Just Business
Armstrong’s comments go beyond mere corporate strategy. At the heart of his message is a larger ethical stance: “It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules”.
According to Armstrong, it is an “ethics violation” to work against the crypto industry by enforcing ambiguous regulations or refusing to provide clear guidance. Armstrong notes that SEC employees who chose to stay during this period must take responsibility for these actions.
Quick TakeHis stance on not working with former SEC leadership is based on principles, not personal vendettas. He states that law firms need to carefully consider their hiring choices, as bringing on these former officials signals support for policies that damaged crypto innovation.
Legal Firms in the Crosshairs
According to Coinbase CEO, hiring individuals who previously enforced restrictive crypto regulations will result in lost business from Coinbase and other major crypto companies. Law firms must understand that their hiring choices must align with their clients’ interests.
Law firms must recognize that employing former SEC officials who worked against crypto will cost them valuable clients. The industry has taken a firm stand against regulatory interference and won’t continue relationships with those who supported or enabled restrictive policies.
Should These Individuals Be “Canceled”?
Armstrong’s position is clear but balanced. He states that while people can work elsewhere, this industry won’t welcome those who previously worked against crypto’s interests.
His stance is simple: “Actions have consequences“.
The crypto industry needs its clear standards of conduct. These standards come from real experiences with unclear regulations and aggressive enforcement.
