Coinbase's CEO Brian Armstrong has taken a decisive stand against law firms employing individuals linked to questionable actions during what he refers to as the SEC's previous administration. In a strategic move, the cryptocurrency exchange has made it clear to its legal partners that hiring such individuals will result in a severed professional relationship with the company.
Armstrong disclosed Coinbase's decision to cut ties with Milbank after the firm hired Gurbir Grewal, former SEC enforcement director. The SEC announced on October 2 that Grewal was stepping down, noting his involvement in enforcing over 100 legal actions in the digital asset industry. By October 15, Milbank brought Grewal on board their litigation and arbitration team.
Scott Edelman, chairman of Milbank, praised Grewal's track record as a federal prosecutor and SEC official. Armstrong stated that this decision prompted Coinbase to end its relationship with Milbank, highlighting concerns over senior figures at the SEC allegedly working to stifle the crypto industry without clear guidance. Some SEC staff reportedly chose to leave rather than be part of what Armstrong labeled an "abnormal" administration.
Armstrong clarified his position against permanently canceling individuals but urged the crypto sector to collectively avoid funding those whose past actions have contributed to regulatory overreach. He has consistently supported pro-crypto officials in the past, advocating for figures like Hester Peirce to lead the SEC. This move is in line with Coinbase's significant political contributions, amounting to $100 million, including $40 million to Fairshake PAC.
While Armstrong stopped short of endorsing Trump's campaign, he showed willingness to collaborate with the incoming administration on policies favorable to cryptocurrencies.
Last month, reports emerged that Armstrong is likely to meet privately with Trump to discuss key government appointments pivotal to the cryptocurrency industry, such as those of Treasury Secretary and SEC chair. This meeting, reportedly set up by Trump's transition team, signifies the administration's favorable stance towards cryptocurrency.