Law firms with detailed knowledge of blockchain technology and Web 3 will be in high demand in the upcoming years. Currently, the crypto industry does not operate within proper rules or regulations.
Globally, the regulators are taking steps to avoid a repeat of disasters like FTX, Terra and Celsius Network in the crypto market. The FTX bankruptcy case has created a high level of doubt and fear among crypto investors and users.
Without clear regulations, the crypto market and industry will continue to be a wild west. Two legal academics believe that crypto-experienced lawyers will play a major role in resolving the cases.
Thomas Hook, Boston Law School professor and chief compliance officer at Bitstamp, explained, “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.”
Currently, experienced crypto lawyers are mainly focused on helping investors, crypto firms, and developers to navigate the complexity of cryptocurrency and blockchain technology.
The senior researcher of RMIT’s Blockchain Innovation Hub, Dr. Aaron Lane, highlighted, “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.”
Importance of law firms for a new digital economy
- These will help recovering misplaced, inaccessible, or stolen digital assets.
- It will help to resolve disputes between users, cryptocurrency exchanges and deal with frozen assets.
How law firms played a major role in recent lawsuits
Earlier, Alameda Research’s former CEO, Caroline Ellison, hired Stephanie Avakian to represent her in the FTX bankruptcy investigation. Avakian is a former SEC offiical who led major cases against Wells Fargo and tech giants including Tesla, FaceBook, Theranos and
She was the director of the enforcement division when the financial watchdog filed lawsuits against Ripple Labs and Robinhood.
Recently, in the ongoing SEC v Ripple case, Nicole Tatz made a shocking announcement. One of the attorneys in Ripple’s ongoing case, Tatz recently filed a motion to withdraw from counsel for Brad Garlinghouse, CEO of Ripple.
She departs from the law firm Cleary Gottlieb Steen and Hamilton LLP, an American multinational law firm currently representing Ripple’s ongoing lawsuit. Meanwhile, all other counsels remain on the case.
The managing partner of the Deaton law firm, John Deaton, is one of XRP’s main supporters in the case.