The crypto industry is actively recruiting more talent as it inches closer to becoming an acceptable asset class in mainstream finance. Although the sector is searching for talented individuals in different fields, it is especially keen on bringing savvy lawyers on board to help address the increasing regulatory pressure and minimize external legal costs.
According to a report, crypto firms have taken to hiring from leading law firms. A development that has seen many law firms introduce crypto services to remain relevant. However, the insatiable appetite for legal experts has seen crypto firms poach from one another, hoping to get lawyers that already have a crypto background, which is an added plus.
Explaining the rush to establish in-house legal teams, John Wolf Konstant, a senior consultant at technology-focused legal recruiting firm Whistler Partners, said,
“In [the crypto] space, the consensus is you need to have someone in-house early. Especially since investors are going to require that, you need to have someone there to help chaperone the process and to make sure everything is buttoned up from the start.”
He added that this demand has resulted in a significant uptick in the amount needed to secure and maintains in-house lawyers that are well-versed with crypto. Konstant pointed out that total annual packages for senior lawyers with crypto expertise can notch seven figures.
Highlighting the rising demand for lawyers in the crypto industry, Kraken Chief Legal Officer Marco Santori previously tweeted,
In the next three months, I will hire thirty (30) lawyers at @krakenfx.
I’d like to hire sixty but honestly I don’t know how to get it done.
Can I acquire a law firm?
— Marco Santori (@msantoriESQ) February 7, 2022
Crypto’s unending legal battles
This news comes as the crypto industry continues fighting to get clear and reasonable regulatory guidelines. An example is Ripple Labs, the creators of Ripple (XRP), which has been embroiled in a legal battle with the U.S Securities Exchange Commission (SEC) since December 2020.
The case, which many experts believe might play a significant role in clarifying crypto regulations, started when the SEC sued Ripple, alleging it violated the Securities Act through the unregistered sale of XRP tokens.
Apart from altcoin projects, the SEC is also coming after Bitcoin developers. As a result, former Twitter CEO Jack Dorsey revealed plans to create a Bitcoin Legal Defense Fund. This fund would help Bitcoin developers facing multi-front litigation by offering them free legal defense.
Following the non-fungible token (NFT) boom, the SEC said it would start investigating possible securities violations in the space.