Gemini Reluctant To Cooperate With Companies That Recruit Former SEC Officials

Gemini founder Tyler Wolvoss. (Photo; Doc. Asset Entrepreneur)

JAKARTA - Tyler Tawvoss, founder of the Gemini crypto exchange, stated that his company will follow Coinbase's lead to cut ties with law firms or entities that recruited former officials of the United States Securities and Exchange Commission (SEC). This is not without reason, because the former SEC official is considered to be involved in excessive law enforcement actions against the crypto industry.

This decision came after Coinbase CEO Brian Armstrong strongly criticized the practice, which he said was detrimental to the development of the crypto sector. In his post on X (formerly Twitter) on November 5, Tawoss confirmed that Gemini would adopt a similar policy to Coinbase.

For information, previously Coinbase had cut ties with law firm Milbank who had recruited Gurbir Grewal, the former SEC's Enforcement Director. Grewal is known to be involved in many law enforcement actions against crypto companies, including the ongoing Ripple case.

This Walivoss firm stance shows his dissatisfaction with regulatory actions such as the SEC which is considered to be conducting an aggressive campaign against the crypto industry. ForVIvoss and many other crypto industry players, this policy not only harms the sector, but also threatens thousands of jobs and investments worth billions of dollars.

Critics, including well-known lawyer Jeremy Hogan, even argue that the SEC's increasingly violent approach could risk weakening the regulator's influence in the future.

In November 2024, 18 US states sued the SEC, accusing the agency of abuse of power that is endangering the growing crypto industry.

In this context, Gemini and Coinbase's decisive actions can be seen as part of their efforts to counter regulatory policies that are considered detrimental to blockchain innovation.

This decision comes amid the planned resignation of SEC Chair Gary Gensler in January. Several names, including Robinhood's attorney, Dan Gallagher, were said to be a replacement candidate. However, on December 6, the president-elect of the US, Donald Trump officially announced a replacement for Gensler, namely David Sacks, who is one of PayPal's co-founders. Trump's decision to appoint Sacks to make the SEC a positive response from a number of crypto industry players.