Emily Walker
Amidst the anticipation of a second Trump administration and more favorable regulations for cryptocurrency, key figures in the crypto sector are taking firm stances. Brian Armstrong, the CEO of Coinbase, emphasized the importance of aligning with partners who share a strong commitment to crypto and blockchain technology.
On December 3rd, Armstrong took to Twitter/X to announce that should their partner law firms choose to collaborate with individuals involved in “bad deeds” from the previous administration, Coinbase would terminate their relationship with those firms. This decision marks a clear boundary in their partnerships.
We’ve informed all the law firms we collaborate with that if they engage anyone linked to unethical actions in the (soon to be) former administration, we will no longer continue our partnership with them.
Senior partners at these law firms appear to be out of touch with the crypto sector’s stance on such matters.… pic.twitter.com/RT0k408i9f
— Brian Armstrong (@brian_armstrong) December 3, 2024
Armstrong Responds to Milbank
This statement by Armstrong was specifically in reaction to Milbank’s choice to employ Gurbir S. Grewal, who is currently the Division and Enforcement Director at the Securities and Exchange Commission (SEC). Milbank, a prominent international law firm with a focus on intricate and notable cases, operates out of 12 offices in New York and Washington, D.C. Armstrong expressed his intention to cut ties with this law firm, criticizing Grewal for undermining the crypto sector by failing to establish clear legislation.
Unclear Crypto Regulations
In his extended commentary, Armstrong elaborated on his discontent with Grewal and the decision to sever ties with Milbank. He believes that inhibiting an industry through a lack of transparent regulations is a serious ethical breach. Armstrong criticized officials for merely citing that they are “following orders” from the agency, stating that individuals can choose to leave such positions, as many commendable people have done.
Armstrong clarified that he does not advocate for cancel culture. However, he insisted that the crypto industry should not profit from entities associated with wrongdoing. He warned firms that by employing such individuals, Coinbase would end their business relationship.
Coinbase’s Future Direction
Coinbase is steadfast in moving towards its strategic goals. The company has recently launched its Coinbase 50 Index, or Coin50, which serves as a benchmark tracking the top 50 cryptocurrencies based on market capitalization. This initiative mirrors the S&P 500 for the crypto market and is adjusted quarterly based on size.
Additionally, Coinbase is preparing for compliance with the Markets in Crypto Assets (MiCA) regulations, which has led the company to discontinue its USDC Rewards program. The firm is also purging non-compliant stablecoins from its platform, advocating for favorable regulations and recognizing the current U.S. Congress as the most supportive of blockchain initiatives in history.
Featured image from Reuters, chart from TradingView