Demand for Crypto Lawyers Increases as Regulatory Pressure Reaches Boiling Point

Crypto-savvy lawyers will play an increasingly important role in Web3 companies. Especially after the implosion of FTX and the industry bracing for regulatory turmoil, two legal scholars think so.

Thomas Hook, a professor at Boston Law School and chief compliance officer at cryptocurrency exchange Bitstamp, told Cointelegraph that Web3’s lawyers have had a difficult time helping companies navigate legal and regulatory uncertainty. It will soon become a “business differentiator,” he said, as it faces a difficult task.

This ultimately determines the speed with which a company can bring products and services to market. Hook explains:

“Given the ambiguity and complexity of many regulations, Web3 companies need to support legal and compliance personnel. It is becoming a differentiator for businesses as it can help or hinder them from getting to market quickly in a way that is unique to them.”

“Without them, companies could face setbacks as regulators try to take control of the industry,” Phuc added.

Dr. Aaron Lane, senior research fellow at RMIT’s Blockchain Innovation Hub, told Cointelegraph that in the current environment, Web3 companies should stay safe and seek legal advice if necessary. Told.

“Entrepreneurs are used to making decisions under economic uncertainty, but are not very good at operating under legal uncertainty.”

Lane explained that the pace of blockchain-based innovation, coupled with more than 50 separate digital asset bills recently introduced in the US Congress, further demonstrates the need.

He believes some of bettWeb3’s lawyers come from the commercial law department, which is a “crucial” base for lawyers in the crypto space.

“Good Web3 lawyers make good commercial lawyers. Today, the best Web3 lawyers in the field started out as commercial law lawyers of some kind, but we expect the core foundations to continue to be important. “

But Lane emphasized that “knowledge of the technologies that make up the Web3 stack will become more and more in demand over the next decade.”

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But for now, the field remains “very niche,” according to CryptoRecruit founder Neil Dundon.

Lane added that legal representation for most Web3 companies is provided by outside counsel rather than in-house counsel focused on cases related to financial services and securities law.