Crypto lawyers will be in demand as regulatory pressure reaches boiling point

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Crypto-savvy lawyers will play an increasingly important role in Web3 ventures, especially after FTX’s implosion and the industry braces for regulatory turmoil, two academics believe.

Thomas Hook, a Boston Law School professor and chief compliance officer at crypto exchange Bitstamp, told Cointelegraph that Web3 lawyers will soon become business differentiators as they face the difficult task of helping companies navigate through legal and regulatory uncertainties.

This will ultimately determine how quickly companies can bring their products and services to market, Hook explained:

Given the lack of clarity and complexity of many regulations, Web3 businesses will continue to need legal and compliance representatives to support them. These types of individuals become business differentiators because they can help or hinder a business from getting to market quickly in a legal and compliant manner.

Without them, companies could face setbacks as regulators seek to rein in the sector, Hook added.

Lead researcher Dr Aaron Lane of RMITs Blockchain Innovation Hub told Cointelegraph that in the current environment, web3 companies should play it safe and seek legal advice where appropriate.

Entrepreneurs are used to making decisions under economic uncertainty, but aren’t as good at operating under legal uncertainty.”

Lane explained that the pace of blockchain-based innovation, coupled with more than 50 independent digital asset bills recently introduced in the United States Congress, further illustrates the need.

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

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 type or another and I expect this basic foundation to continue to be crucial.

Knowledge of the technologies that make up the Web3 stack will be increasingly in demand over the next decade, Lane pointed out, however.

Related: Lawyer Explains New Federal Law on Virtual Assets in UAE

For now though, the industry remains highly specialized, according to CryptoRecruit founder Neil Dundon.

Lane added that most legal representation for Web3 companies is provided by outside attorneys rather than in-house attorneys, who focus more on cases related to financial services and securities laws.

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