No more two timing crypto businesses

Coinbase CEO Brian Armstrong has fired a shot across the bow of big law: those law firms representing crypto businesses while aiding government agencies with anti-crypto agendas have no place in the industry's future. In one of his most recent posts Armstrong warned that Coinbase would not work with firms employing lawyers who’ve been part of administrations actively seeking to stamp out crypto.

Drawing the line

Armstrong didn’t mince words, directly addressing the perceived conflict of interest. “If you worked for an administration that sought to stamp out crypto, and you’re now looking to work at law firms we engage, you’re mistaken,” he wrote. This isn’t just a critique—it’s a declaration of intent to sever ties with legal advisors who fail to align with the ethos and survival of the crypto industry.

Implications for web3

The message hits home at a critical moment for the web3 community. With regulatory crackdowns intensifying, cautious excitement for tectonic changes to the SEC’s approach to crypto regulation resulting from Trump’s election, and early but unequivocal signs that a bull market is upon us, Armstrong’s stance reflects a growing demand for loyalty and transparency from those advising the industry. For web3 advocates, it’s a rallying cry to build a network of legal professionals who truly understand and support web3 businesses. 

Coinbase's approach could signal a shift away from large, multi-faceted law firms toward boutique practices and in-house legal teams deeply embedded in the web3 ethos. It also puts law firms on notice: crypto companies are watching their allegiances closely.

A Challenge to the Legal Profession

Armstrong’s post is a stark warning to legal professionals serving the crypto sector: align your priorities or risk losing clients. Ultimately, lawyers in web3 cannot serve two masters — law firms must choose between supporting the burgeoning crypto industry or aligning with regulatory bodies that may seek to curtail its growth.

For firms operating in this dual capacity, the potential fallout is significant. Crypto companies may start favoring boutique practices or in-house counsel over firms perceived as conflicted. Armstrong’s statement also highlights a growing divide between traditional legal frameworks and the needs of an industry built on principles of decentralization and innovation

The Takeaway

Armstrong’s words are a wake-up call to the crypto sector and its advisors. For web3 companies, it’s a moment to reassess who they trust to guide them through an increasingly complex regulatory landscape. For lawyers, it’s a reminder that the crypto industry is no longer willing to tolerate divided loyalties.

The message is clear: in the world of crypto, you can’t serve two masters—and those who try may find themselves without a seat at the table.

Ape Law’s point of difference

As a niche law firm that serves exclusively web3 businesses, we stand with crypto businesses and have done so since inception. Whether we are formulating strategies for regulated or unregulated operations, intermediating discussions with regulatory agencies, or assessing regulatory risk, our clients have and always come first. We advocate for, and will always stand with our clients.  

Contact us now to find out how we can help your project.