This statement came after New York-based law firm Milbank, where Coinbase previously worked, hired former SEC Enforcement Division Head Gurbir Grewal as a partner.

In his post on social media platform X, Armstrong announced that the Coinbase team will immediately cut ties with companies that hired people who harmed the crypto industry during the Biden Administration. Armstrong argued that law firms failed to understand industry reactions to previous administrations’ anti-crypto stance.

Milbank’s hiring of former SEC administrator Gurbir Grewal is at the center of this controversy. Grewal resigned on October 11, 2024, after serving as head of the SEC Enforcement Division for three years. Coinbase announced that it will not do business with this company as long as Grewal serves as a partner at Milbank.

“Trying to illegally destroy an industry is an ethical violation on my part,” Armstrong said. “If you are in a senior position in this process, you cannot say that I was just following orders,” he said.

Armstrong also called on other companies in the industry to take a similar stance. He stated that providing financial gain to these people is against the principles of the industry and said, “Inform your law firms that hiring such people means losing you as a customer.”

However, Armstrong added that he did not advocate the complete exclusion of these people and suggested that they work in other sectors.

Grewal led civil penalties exceeding $20 billion and more than 2,400 cases during his tenure at the SEC. Following his resignation, the SEC announced that it had sanctioned more than 100 crypto firms and digital asset operators for violating federal securities laws during Grewal’s time in office.

The Biden Administration’s SEC policies have been frequently criticized for waging an anti-crypto “war.” As of October 2024, eight lawsuits against crypto firms worth a total of $19.45 billion have been resolved under the Biden Administration. This figure indicates an increase of 78.9% compared to the previous year.

In March 2023, the SEC sent a notice to Coinbase informing it of its plan to impose sanctions for alleged violations of various securities laws. In response to this notice, Coinbase filed a lawsuit asking the SEC to respond to its request to create new rules for the crypto industry. However, the SEC appealed to the court to dismiss this case.

In June 2023, the SEC filed a lawsuit against Coinbase and its affiliates, but did not directly target Brian Armstrong and other senior executives. Coinbase’s legal fight against these policies targeting the industry continues at a time when pressure is increasing on the crypto industry.

These developments show that industry leaders are looking for new solutions to ensure that regulations do not hinder crypto innovation. These statements by Armstrong stand out as a strong message for both companies within the industry and regulators who take a stance against anti-crypto policies.