Coinbase Severs Ties with Law Firms Employing Former SEC Officials

The American company Coinbase will cease working with law firms that have hired former SEC employees who opposed cryptocurrencies, according to CEO Brian Armstrong.

We’ve let all the law firms we work with know, that if they hire anyone who committed these bad deeds in the (soon to be) prior administration, we will no longer be a client of theirs.

Senior partners at these law firms seem unaware of the crypto industry’s position on this.… https://t.co/k8R6NtfTV1 pic.twitter.com/RT0k408i9f

— Brian Armstrong (@brian_armstrong) December 3, 2024

He described the actions of the Commission’s officials under Gary Gensler’s chairmanship as “unethical.” The head of Coinbase believes that those disagreeing with the agency’s policies should consider changing jobs:

“Trying to illegally kill an industry by refusing to publish clear rules is unethical in my view. […] They had the opportunity to leave the SEC, and many good people did.”

Armstrong stated that his company has already severed ties with the firm Milbank, which hired former SEC enforcement chief Gurbir Grewal.

“[Crypto projects] should not be putting money in their pockets after abuses. Let your law firms know that by hiring these people, they lose you as a client,” added the CEO.

He referred to a message from former cybersecurity director at the NSC Joshua Steinman, who shared his thoughts on hiring former Commission officials on X.

DEAR STARTUP FOUNDERS

The election is over. The future has been secured.

But the people who wanted to put Elon in jail, restrict for your AI model, keep funneling government contracts to the usual suspects, and more have one last trick:

They’re going to ask you for a job.

1/

— joshua steinman (??,??) (@JoshuaSteinman) November 8, 2024

The former official stated that such a situation arises in every cycle, but this time the outgoing administration has shown particular hostility towards cryptocurrencies. He added that “extortion” by the SEC should not be rewarded by hiring such individuals:

“It’s about holding people accountable for bad behavior—which I encourage in all scenarios—and ensuring you bring on new team members who share your vision.”

In November, former SEC commissioner Paul Atkins was named the leading candidate for the agency’s chairmanship under Donald Trump’s administration.