Crypto-savvy lawyers will play an increasingly important role in Web3 firms — especially after the implosion of FTX and the industry gearing up for regulatory turmoil, two legal scholars believe.
Thomas Hook, a professor at Boston Law School and chief compliance officer at crypto exchange Bitstamp, told Cointelegraph that Web3 lawyers will soon become “business differentiators” because they will be faced with the difficult task of helping companies get through navigate legal and regulatory uncertainties.
This will ultimately determine how quickly companies can get their products and services to market, Hook explained:
“Given the ambiguity and complexity of many regulations, Web3 businesses will continue to need legal and compliance representatives to support them. These types of people become business differentiators because they can help or prevent a company from getting to market quickly in a legal and compliant manner.”
“Without them, companies could suffer setbacks as regulators try to get a grip on the industry,” Hook added.
Senior Research Fellow Dr. Aaron Lane of RMIT’s Blockchain Innovation Hub told Cointelegraph that in the current environment, Web3 companies should play it safe and seek legal advice where necessary.
“Entrepreneurs are used to making decisions under economic uncertainty, but are not so good at operating under legal uncertainty.”
Lane explained that the pace of blockchain-based innovation, coupled with over 50 independent digital asset bills recently introduced to the United States Congress, further illustrates the need.
He believes that some of bettWeb3’s lawyers will come from the business law field, which is a “crucial” foundation for lawyers in the crypto space.
“A good Web3 lawyer will be a good business lawyer. The best Web3 lawyers in this field today started out as corporate lawyers of one sort or another, and I expect that core foundation will continue to be critical.”
“Knowledge of the technologies that make up the Web3 stack will be in increasing demand over the next decade,” Lane said.
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For now, however, the sector remains “very niche,” according to CryptoRecruit founder Neil Dundon.
Lane added that most legal representation for Web3 firms is provided by outside counsel rather than in-house counsel who focus more on cases related to financial services and securities laws.