Coinbase Ends Relations With Law Firms Hiring Former Crypto Regulators
By: Eva Baxter
Coinbase, the leading American cryptocurrency exchange, has made a strategic decision to end ties with law firms that employ former regulators who have previously been involved in actions perceived as detrimental to the cryptocurrency industry. This announcement was made by Coinbase CEO Brian Armstrong in a recent social media post, emphasizing the firm’s stance against what he described as unethical regulatory practices.
The move follows the hiring of former SEC Division of Enforcement Director Gurbir S. Grewal by Milbank’s Litigation & Arbitration Group, prompting Coinbase to sever connections with the firm. Armstrong pointedly criticized senior partners at such law firms, stating they were unaware of the broader crypto industry's perspectives and ethical considerations. Armstrong particularly singled out Grewal as being part of regulatory activities he deemed as violations against the crypto industry’s interests.
Armstrong’s comments reflect a growing sentiment within the crypto sector that previous actions under the SEC’s leadership were unfairly targeted at digital asset companies without providing adequate compliance guidance. He contended that this was not a typical period for the SEC, suggesting that those involved had ethical responsibilities that were not adhered to, impacting the industry adversely.
While Armstrong clarified that he believes in redemption and giving individuals a chance for a fresh start, he also stressed the need for the crypto community to actively choose not to support those who played roles in its historical challenges. The stance taken by Coinbase highlights a broader conflict between the rapidly evolving digital currency ecosystem and traditional regulatory frameworks, calling for a reevaluation of crypto policy. This decision also underscores the rising tensions and ongoing legal battles that Coinbase has been navigating, with an assertive push for policy reforms in the sphere of digital assets and blockchain technology.
