The US Federal Trade Commission (FTC) has reshaped the landscape of employment regulations, fundamentally altering the prospects of millions of individuals seeking careers in the crypto industry. FTC Chairwoman Lina Khan’s decision to ban non-compete agreements nationwide has sent ripples through the job market, eliciting jubilation from job seekers across the country.
For the first time in recent memory, the restrictive shackles of non-compete clauses have been cast aside, liberating an estimated 30 million American workers from contractual constraints that hindered their mobility within the same industry.
Effective immediately, these workers are now unencumbered, empowered to explore new professional opportunities without fear of legal reprisal.
Projections indicate that this rule change will catalyze the emergence of approximately 8,500 new businesses, potentially generating tens, if not hundreds, of thousands of fresh employment opportunities. The economic impact is expected to be substantial, with a projected growth rate of 2.7% in new business openings across the nation.
On an individual level, the average working adult stands to benefit significantly, with an estimated additional annual earning of $524 attributed to the FTC’s decisive action.
FTC bans non-compete agreements
The implications of this regulatory shift are particularly profound for the crypto industry, which weathered significant turbulence during the recent bear market. In the aftermath of widespread layoffs, many crypto professionals found themselves hampered by non-compete clauses, restricting their ability to seek employment with competing firms.
Goliaths of the crypto sector, including ConsenSys, The Block, Digital Currency Group, Crypto.com, Kraken, and Gemini, were among those who downsized their workforce, leaving thousands without employment opportunities.
Now, with the abolition of non-compete agreements, a vast pool of talent is free to explore opportunities with direct competitors of their former employers.
However, it’s worth noting that a minor exception exists within the FTC’s ruling. Non-compete agreements for senior executives, who constitute a minute fraction of the workforce, are permitted to remain in effect. While the prohibition on new non-compete agreements marks a significant departure from past practices, existing agreements for this select group of executives remain valid.