The 180-degree transformation of the regulatory approach to crypto is just around the corner.
The Joe Biden presidency has been exceptionally detrimental toward digital asset innovation. While the Securities and Exchange Commission took a regulation-by-enforcement approach to crypto, ignoring the profound opportunity to transform capital markets, other officials on Capitol Hill vocally or quietly undermined the industry. The election of Donald Trump as President will usher in a new regime that supports Fintech innovation, bringing a willingness to work with entrepreneurs to craft rules that protect investors, guard against systemic risk while boosting competition and change.
This week, Coinbase CEO and founder Brian Armstrong issued a blunt warning to officials who are or who were part of the Biden Administration that they will not work with any law firm that hires individuals who committed “bad deeds.” Armstrong mentions former SEC Director of Enforcement Gurbir S. Grewal by name. Grewal just joined the law firm of Milbank as part of their litigation and arbitration group. It appears that Coinbase will not be a client of Milbank.
Armstrong stated on X:
“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. For instance, Milbank recently messed up and hired Gurbir. We don’t work with them now (and never will while he works there). It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules. If you were senior there, you cannot say you were just following orders. They had the option to leave the SEC and many good people did. It was not a normal SEC tenure. They can go work in other areas (I don’t believe in permanently cancelling people), but we as an industry should not be putting money in their pocket after the abuse. Let your law firms know that hiring these folks means losing you as a client.”
The last four years have been challenging for the Fintech sector. SEC leadership has focused on issues unrelated to securities while pursuing political ambitions. This has been exacerbated by Democrat control of the Senate which has crushed much sensible legislation. This should change in the coming years.
