An Emerging Practice Area: 5 Helpful Things To Know About Cryptocurrency and Digital Assets

In this article, we’ll cover 5 key features of the cryptocurrency and digital assets industry to highlight its potential as an emerging practice area. We’ll examine unique aspects and legal challenges, demonstrating the opportunities available for legal professionals in this dynamic field.

To truly grasp cryptocurrency and digital assets as an emerging practice area, it’s essential first to understand the landscape of other established legal fields. As the saying goes, “To know where you’re going, you must first understand where you’ve been.”

If you haven’t yet, it’s important to familiarize yourself with the fundamentals of B2C legal marketing. Unlike well-established areas like personal injury or accident law, the cryptocurrency sector lacks a wealth of historical marketing data. As a result, we need to draw insights from alternative sources.

Here are five key characteristics that define the cryptocurrency and digital assets industry:

1. High-Profile Cases

There are a lot of high-profile cases. These cases often revolve around issues such as fraud, money laundering, sanctions violations, and malware, highlighting the complexities and risks associated with digital currencies.

Other examples include the collapse of Mt. Gox, the legal battles faced by the founders of Bitfinex and Tether, and the various charges against executives of major cryptocurrency platforms, Coinbase and Binance.

2. Lobbying and Political Activity

Gone are the days of the frumpy-looking executive meeting financial regulators in dirty sneakers.

Once the medium of exchange on Silk Road, crypto now has an industry profile in OpenSecrets. You might say Sam Bankman-Fried walked so Fairshake PAC could run. There’s no question this industry’s lobbying and influence efforts have matured.

We also observe many justice-involved companies and individuals contributing to the industry’s political action committee:

• Brian Armstrong: Coinbase CEO Brian Armstrong gave the PAC $1 million as an individual donor. Find this and all his political donations at the Federal Election Commission.
  

  (Source: Federal Election Commission)

• Jump Crypto: The company gave $15 million to Fairshake PAC.

• Ripple Labs: The company gave $45 million to the industry PAC.

(Source: Federal Election Commission)

• The Winklevoss Twins: Notable Facebook adversaries and former aspiring adult popstars Tyler and Cameron Winklevoss also gave generously to the PAC.

(Source: Federal Election Commission)

If you want to learn more, Molly White does a great job and has been reporting on political activity in the crypto space.

3. Known Bad Actors

The cryptocurrency industry has seen its fair share of bad actors (pun intended). There are high-profile scams, fraudulent exchanges, and YouTube influencers. Federal inmate Steve Bannon is a crypto enthusiast.

4. Digital Asset Investors

Cryptocurrency has garnered significant interest among Americans.

Depending on who you ask, there are either 18 million, 52 million, or 93 million American crypto investors.

Compare those numbers to other large, incumbent legal fields. There were just more than 6 million car accidents in 2021. There were almost 3 million work injuries and illnesses in 2022.

5. Search Trends

Finally, keyword search volume serves as a valuable indicator of market interest and growth potential across various legal practice areas, including the rapidly evolving field of cryptocurrency and digital assets.

Here’s a comparison of search volumes for key terms:

The high level of interest in cryptocurrency can be attributed to several factors. Given the substantial search volume, prominent industry figures, and significant policy debates, any legal outcomes are likely to have far-reaching implications. This suggests a potentially competitive marketing environment.

The keyword search data is from Spyfu in July, 2024. So is this.

As the field of cryptocurrency and digital assets continues to evolve, it presents both significant challenges and opportunities for legal professionals. By understanding the unique aspects of this industry, lawyers can position themselves at the forefront of an emerging and dynamic practice area. Staying informed about the latest trends and legal developments is crucial for effectively navigating this complex landscape.

Claim your profile in the legal directory for digital asset investors today!