Crypto-savvy lawyers will play an increasingly important role in Web3 firms, especially after FTX’s implosion and the industry is bracing for regulatory turbulence, say two law scholars.
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” as they face the difficult task of helping companies. navigate through legal and regulatory uncertainties.
This will ultimately determine how fast companies can put their products and services on the 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 prevent a business to get to market quickly in a legal and compliant manner.
“Without them, companies could face setbacks as regulators seek to rein in the industry,” Hook added.
Lead researcher Dr Aaron Lane of RMIT’s Blockchain Innovation Hub told Cointelegraph that in the current environment, Web3 companies should play it safe and get legal advice if applicable.
“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.
For now though, the sector remains “very niche”, 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.