Why Blockchain Projects Need More Legal Talent in 2025

I still remember the first time a blockchain founder told me, "We don't need a legal team yet." That was back in 2018, the height of the ICO boom. Fast forward a few months, and their project was facing regulatory scrutiny they never saw coming. That story isn't unique—it’s a pattern I’ve seen play out time and time again. It’s exactly why blockchain projects will be at a disadvantage if they overlook the importance of legal expertise. Yet, even today, so many blockchain startups still underestimate just how crucial legal talent is to their survival.The blockchain industry has matured, but the legal landscape around it has become more complex than ever. In 2025, ignoring legal considerations isn’t just risky—it’s reckless. Here’s why every blockchain project should prioritise legal expertise now more than ever.

The Regulatory Crackdown Is Real

Regulators worldwide are tightening the screws on crypto projects, and 2025 isn’t going to be any easier. We’ve seen major lawsuits, exchange shutdowns, and token delistings—all because projects thought they could navigate the grey areas without proper legal guidance. The SEC’s crackdown on unregistered securities, MiCA regulations in the EU, and increasing AML laws globally are all indicators that legal oversight is no longer optional.Take Binance, for example. The crypto giant has spent years battling regulators across multiple jurisdictions, paying hefty fines and restructuring its operations. Smaller projects don’t have the same resources to fight legal battles, making it even more critical to get things right from the start. Having an in-house legal expert or a solid external counsel can mean the difference between compliance and collapse.

Tokenomics and Smart Contracts Need Legal Review

Most blockchain founders focus on building cool tech, but tokenomics and smart contracts are legal minefields if not structured correctly. Is your token a security? Is your staking mechanism compliant? What happens if a bug in your smart contract leads to financial loss? These are not just theoretical questions—they’re make-or-break issues.In 2023, the SEC went after Kraken for its staking program, arguing that it constituted an unregistered securities offering. Other projects have been blindsided by regulatory bodies challenging their token distributions. The safest route? Bring in legal talent early to stress-test your token model and ensure you're not inadvertently setting yourself up for regulatory trouble.

IP Protection and Contracts Are Often Overlooked

Many blockchain projects are built on open-source principles, but that doesn’t mean intellectual property (IP) laws don’t apply. Protecting proprietary code, negotiating partnerships, and drafting airtight agreements are crucial. I’ve seen too many projects fall apart because of poorly written contracts, disputes over IP ownership, or legal loopholes that competitors exploit.Case in point: a project I worked with in 2021 developed a revolutionary layer-2 scaling solution. The problem? They hadn’t secured proper IP protection, and within months, a well-funded competitor had replicated their work. With the right legal team, they could have safeguarded their innovations and prevented unnecessary losses.

The Future of DAOs and Compliance Challenges

Decentralised Autonomous Organisations (DAOs) were supposed to be the answer to traditional governance problems. But in reality, they’ve introduced a host of legal challenges that most founders aren’t prepared for. Who is liable when a DAO gets sued? How do you structure governance tokens to remain compliant? Can DAOs hold real-world assets legally?One of the biggest legal wake-up calls came in 2022 when the CFTC fined the Ooki DAO, holding token holders responsible for regulatory violations. This set a precedent that DAOs can’t simply exist outside the law. More jurisdictions are now working on frameworks for DAOs, but navigating these laws requires legal expertise that most projects simply don’t have in-house.

Lawyers Are No Longer Optional

Blockchain has always been about innovation, but that innovation exists within a legal framework that’s tightening by the day. The "move fast and break things" mindset doesn't work when breaking things means breaking laws. It’s exactly why blockchain projects will be at risk if they don't prioritize legal expertise. Whether it’s regulatory compliance, tokenomics, IP protection, or DAO structuring, legal expertise is no longer a nice-to-have—it’s a necessity.I’ve worked with projects that embraced legal oversight from day one, and they’re still thriving. Others that ignored it? Many have shut down, paid massive fines, or lost investor trust. If you're building in blockchain in 2025, do yourself a favour: hire a lawyer before you need one.