As Bitcoin and other virtual currencies, cryptocurrencies and digital assets become more commonly used in ordinary commercial transactions, it is perhaps inevitable that attorneys increasingly will seek or be asked to take payment in this form, or to hold such assets in escrow or trust. Some states thus have begun to consider whether legal ethics rules impose any restrictions or limitations on attorneys’ ability to do so. In recent years, ethics opinions addressing such questions have been issued in Nebraska, New York and most recently Washington, D.C. In addition, regulatory requirements beyond the rules of legal ethics can also sometimes affect what attorneys can and cannot do in this area.

Nebraska

A September 2017 Nebraska ethics opinion presented three questions for review: (1) may an attorney receive digital currencies such as bitcoin as payment for legal services; (2) may an attorney receive digital currencies from third parties as payment for the benefit of a client’s account; and (3) may an attorney hold digital currencies in trust or escrow for clients? The opinion concluded that all are permissible, though with some caveats. Neb. Ethics Advisory Opinion for Lawyers, Op. 17-03 (2017).