Coinbase CEO Brian Armstrong said that as a firm, Coinbase will not cooperate with law firms hiring anti crypto, and officials who have committed crimes against the crypto industry.
Brian Armstrong on Avoiding Cooperation with Anti-Crypto Firms
In a post on X, Armstrong mentioned that Coinbase had informed all the law firms they collaborate with that hiring anyone involved in misconduct against the crypto industry from the outgoing government would lead to the termination of their professional relationship. He expressed the belief that attempting to undermine an industry without providing clear regulations is unethical.
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 istration, 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.… https://t.co/k8R6NtfTV1 pic.twitter.com/RT0k408i9f
— Brian Armstrong (@brian_armstrong) December 3, 2024
Coinbase CEO argued that senior officials could not justify their actions by claiming they were merely following orders, noting that they had the option to leave the US Securities and Exchange Commission (SEC) which is something many reputable individuals had already done. This was not a typical SEC term.
While stating the firm does not permanent bans, Armstrong suggested that those officials could pursue careers in other fields. However, Armstrong urged the crypto industry not to financially such individuals after the damage they had caused. “They can choose to leave the SEC, and many good people have chosen to leave. This is not a normal SEC term,” noted Armstrong.
He recommended informing law firms that hiring these former officials would result in losing them as clients.
Armstrong’s remarks on avoiding cooperation with anti-crypto law firms come amid increasing scrutiny and pressure on crypto firms by the SEC, particularly under the Biden istration.
Coinbase’s balance sheet
Armstrong also spoke on Coinbase’s balance sheet, he added that nearly one-fourth of Coinbase’s balance sheet, after deducting debt, is in crypto, with half of it being Bitcoin, similar to its percentage in the total cryptocurrency market capitalization.
About 25% of our balance sheet, net of debt, is held in crypto (about half of that is Bitcoin, similar to % of total market cap).
Almost all our liabilities are still priced in dollars unfortunately, so just a question of how much risk to take. We’re not a hedge fund.
What % do…
— Brian Armstrong (@brian_armstrong) December 2, 2024
Armstrong added, “What % do you think it should be? I think there is a reasonable argument it could be higher – just a question of how much and why.” He added that Coinbase is not a hedge fund and stated that he personally believes there is a reasonable case for a higher allocation of cryptocurrency on the balance sheet, it’s just a matter of how much and why.
