Coinbase Severs Ties With Milbank Over Ex-SEC Official’s Hiring  

• Coinbase CEO Brian Armstrong declared the company would cut ties with law firms hiring figures linked to anti-crypto actions under the Biden Administration.  
• Coinbase terminated its partnership with Milbank after hiring ex-SEC enforcement chief Gurbir Grewal, citing ethical concerns.  
• Brian Armstrong urged the crypto industry to hold law firms accountable by avoiding business with firms that hire officials who undermine crypto.  

Coinbase CEO Brian Armstrong announced that the exchange would sever relationships with law firms employing officials associated with anti-crypto actions during the Biden Administration. This move came after Milbank LLP, a firm Coinbase previously worked with, hired Gurbir Grewal, the former SEC enforcement chief. 

Armstrong’s decision reflects a broader stance within the crypto industry, highlighting its unwillingness to overlook regulatory challenges posed by officials under the current administration.  

Ex-SEC Official’s Hiring Sparks Controversy  

Grewal served as the SEC’s enforcement division chief for three years, overseeing significant enforcement actions against crypto entities. During his tenure, the SEC secured over $20 billion in civil penalties and initiated thousands of lawsuits, including more than 100 targeting crypto firms for alleged securities violations. Grewal stepped down on October 11, shortly before joining Milbank as a partner.  

Citing Grewal’s track record, Armstrong declared Coinbase would no longer work with Milbank as long as Grewal remained a partner.  

Armstrong’s Call to the Crypto Industry  

Beyond terminating its relationship with Milbank, Armstrong urged other crypto firms to adopt similar measures. He emphasized the importance of holding law firms accountable for supporting officials who, in his view, sought to stifle innovation in the crypto space.  

“It’s unethical to harm an industry without establishing clear rules. Those responsible should not profit from the sector they sought to damage,” Armstrong stated in a post on X. He added that the industry should redirect its resources away from firms associated with such individuals.  

Broader Context of SEC’s Actions  

The SEC, under the Biden Administration, has faced criticism from the crypto sector for what many perceive as a combative approach. Since 2023, the regulator has intensified its scrutiny of crypto platforms, including high-profile actions against Coinbase itself. In June 2023, the SEC filed a lawsuit against Coinbase, alleging multiple securities law violations, although no executives, including Armstrong, were named.  

The growing friction between crypto firms and regulatory authorities underscores the challenges faced by the sector in navigating legal landscapes. Armstrong’s stance represents a push for solidarity among crypto players, advocating for a unified response against perceived regulatory overreach.