Key Takeaways
- Coinbase has called for other exchanges to follow in its footsteps and part ways with law firms that hire former anti-crypto SEC executives.
- CEO Brian Armstrong revealed it had parted ways from the Milbank law firm after it hired Gurbir Grewal.
- Multiple different SEC executives have switched sides to law firms focusing on digital assets.
Coinbase CEO Brian Armstrong has warned law firms after announcing that the crypto exchange had cut ties with firms that had employed former executives from the U.S. Securities and Exchange Commission (SEC).
Armstrong slammed any senior workers at the agency who did not decide to leave on their own accord, claiming that “you cannot say you were just following orders.”
Warning to Law Firms
On Tuesday, Armstrong took to X to call out fellow exchanges, urging them to part ways with law firms if they hired “anyone who committed these bad deeds in the (soon to be) prior administration.”
The Coinbase CEO, who has been a major critic of the agency, said the exchange has already parted ways with a law firm that has hired an executive.
“For instance, Milbank recently messed up and hired Gurbir [Grewal]. We don’t work with them now (and never will while he works there),” Armstrong wrote.
Grewal accused some of the biggest exchanges of securities violations, including Coinbase and Binance.
“It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules,” Armstrong said.
No Excuse
Armstrong gave no leeway for excuses, claiming that he believed no executives could say, “You were just following orders.”
“They had the option to leave the SEC, and many good people did,” he said.
While the CEO does not believe in “canceling” anyone, he said the industry should not be “putting money in their pocket after the abuse.”
“They can go work in other areas,” he added.
Where Do SEC Enforcers End Up?
Gurbir is not the only SEC executive hired by law firms focusing on digital assets. Many senior execs have left the agency to use their insider knowledge to help the side they were originally against.
Carolyn Welshhans, former Acting Chief of the SEC’s Crypto Assets and Cyber Unit, joined law firm Morgan Lewis in October 2024.
The firm has a strong focus on digital assets, with Welshans helping clients with securities enforcement issues and those needing clarity on the SEC’s evolving legal framework.
Meanwhile, Ladan Stewart, a key figure in SEC’s lawsuits against Coinbase and Ripple, has joined White & Case.
Stewart now helps the firm’s clients work through SEC enforcement actions related to crypto.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
