July 25, 2024
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Crypto lawyers to be in Demand as Regulatory Pressure Reaches Boiling Point

Commercial lawyers with a strong understanding of blockchain and crypto technology will be in great demand.

Two legal professors believe that crypto-versed lawyers will play an increasingly essential role in Web3 enterprises, especially as the industry braces for regulatory upheaval following the fall of FTX.

Thomas Hook, a Boston Law School professor and the chief compliance officer at cryptocurrency exchange Bitstamp, told Cointelegraph that Web3 lawyers will soon become “business differentiators” because they will be faced with the difficult task of assisting firms in navigating legal and regulatory uncertainties.

Hook noted that this will ultimately influence how quickly enterprises can get their products and services to market:

“Given the lack of clarity in many regulations and the complexity, Web3 companies will continue to need legal and compliance representatives to support them. These types of individuals are becoming business differentiators as they can help or hinder a business to get to market quickly in a legal and compliant manner.”

“Without them, companies may face difficulties as regulators seek to gain control of the industry,” Hook added.

Dr. Aaron Lane, Senior Research Fellow at RMIT’s Blockchain Innovation Hub, told Cointelegraph that given the current atmosphere, Web3 enterprises should play it cautious and seek legal guidance as needed.

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

Lane highlighted that the rapid speed of blockchain-based innovation, as well as the recent introduction of over 50 distinct digital asset laws in the United States Congress, underscores the necessity.

He believes that some of the top Web3 lawyers will emerge from the commercial law sector, which he considers to be a “crucial” foundation for crypto lawyers.

“A good Web3 lawyer will be a good commercial lawyer. The best Web3 lawyers in the field today started out as commercial lawyers of one kind or another and I expect that core foundation will continue to be crucial.”

“Knowledge of the technologies that comprise the Web3 stack will be increasingly in demand over the coming decade,” Lane cautioned.

However, according to CryptoRecruit founder Neil Dundon, the sector remains “extremely narrow” for the time being.

Lane stated that external counsel provides much of the legal assistance for Web3 firms rather than in-house lawyers, who specialise in disputes involving financial services and securities legislation.