Crypto Companies Prioritize Legal Hires Amidst Increased Regulatory Scrutiny

Crypto companies in the United States are increasingly focusing on hiring legal professionals in response to heightened regulatory scrutiny. The move comes following recent lawsuits filed by the Securities and Exchange Commission (SEC) against major exchanges Binance and Coinbase. The SEC accused Binance of engaging in the unlawful sale of securities and failing to register, while Coinbase was sued for operating as an unregistered exchange. Both exchanges have denied any wrongdoing.

The core issue in these cases revolves around whether certain digital assets can be classified as securities. Legal professionals predict that the courts and eventually Congress will address this matter. In the meantime, crypto businesses are advised to seek legal counsel, invest in compliance teams, utilize blockchain intelligence solutions, collaborate with law enforcement, and establish robust corporate governance structures.

Some companies claim that these developments do not affect their longstanding commitment to compliance, but they acknowledge the need for increased vigilance in light of the allegations against Binance and Coinbase. Crypto exchanges such as Bitstamp and Bakkt are reviewing the new information to determine appropriate actions. The trend of regulatory actions against exchanges has prompted discussions between companies and regulators to develop clearer guidance and enforcement mechanisms for compliant operations. As a result, the demand for legal professionals in the crypto industry has grown, including roles related to negotiations with regulators, compliance, and securities law expertise. However, larger crypto firms are currently cautious about hiring due to the uncertainties created by the lawsuits against Binance and Coinbase.