Cryptocurrency-versed lawyers will play an increasingly important role in Web3 companies, especially after the FTX implosion and the industry is bracing for regulatory turmoil, two legal scholars believe.
Boston Law School professor and director of compliance at crypto exchange Bitstamp Thomas Hook told Cointelegraph that Web3 lawyers will soon become โbusiness differentiatorsโ because they will be faced with 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 the market, Hook explained:
โGiven 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 people are becoming business differentiators, as they can help or hinder a company from getting to market quickly in a legal and compliant manner.โ
โWithout them, companies could face setbacks as regulators seek to rein in the industry,โ Hook added.
Senior Researcher Dr. Aaron Lane from RMIT's 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 in conditions of economic uncertainty, but they are not so good at operating in conditions of legal uncertainty."
Lane explained that the pace of blockchain-based innovation, along with more than 50 standalone digital asset bills introduced in the United States Congress in recent times, further illustrates the need.
He believes that some of the best Web3 lawyers will come from the business law sector, which is a "crucial" base for lawyers in the cryptocurrency field.
โA good Web3 lawyer will be a good commercial lawyer. The best Web3 lawyers in the field today started out as business lawyers of one sort or another and I hope that that core base remains crucial."
โKnowledge of the technologies that make up the Web3 stack will be in increasing demand over the next decade,โ Lane emphasized, however.
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However, for now, the sector remains "very niche", according to CryptoRecruit founder Neil Dundon.
Lane added that much of the legal representation of the Web3 companies is provided by outside attorneys rather than in-house attorneys, who specialize more in cases involving financial services and securities law.
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