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Washington DC Lawyers Can Now Accept Cryptocurrency Payments for Legal Services

Lawyers working within the metropolitan area of Washington DC can now accept cryptocurrency payments for legal services so long as the fee agreement is reasonable and fair, and the lawyer is able to safeguard their digital assets, the District of Columbia Bar stated in its ethics opinion.

It’s ethical for lawyers to accept crypto

According to the ethics opinion, attorneys cannot hold back the tide of time forever as cryptocurrencies are increasingly being accepted as a form of payment by vendors and service providers, including lawyers. The opinion acknowledged the volatile nature of cryptocurrencies by saying that the client’s fairness needs to be considered in fee arrangements.

Law firms, such as Big Law players, are increasingly accepting cryptocurrency as payment for legal services, despite the volatility and risk associated with the crypto markets. New York City, Nebraska, and North Carolina bars have issued advisory opinions that favor acceptance of digital currency as payment.

The DC Bar opinion stated that ethics standards require lawyers’ fees to be reasonable. However, such rules do not prohibit lawyers from accepting potentially volatile assets as payment for fees. Examples of such payment include shares of corporate stocks, cryptocurrencies, and properties, the opinion said.

Lawyers who accept an advance fee in cryptocurrency are subject to ethics rule 1.8(a) that requires a reasonable agreement with terms explained in writing, and that is fair to the client. Furthermore, the client must have a chance to consult with outside legal counsel on any cryptocurrency payment deal. Attorneys need to have written, informed consent to the agreement from clients.

Fairness to the client is especially vital for volatile assets such as cryptocurrency for future work. An agreement’s fairness should be evaluated at the time of signing. But there is no ethical breach if future events out of a lawyer’s control cause the fee to appear unreasonable, the opinion stated.

Cryptocurrencies moving mainstream

Many people may still think of cryptocurrencies as a currency ecosystem majorly inhabited by criminals and associated with tax evasion, money laundering, and the Dark web. But upon taking a closer look, the crypto industry is expanding and increasingly being accepted and used by younger generations and continuously moving towards the mainstream.

An increasing number of companies and retailers have already accepted cryptocurrencies, and many more are accepting Bitcoin and major crypto assets. While crypto acceptance is expanding to other areas, professions, and businesses, it is a trend that law firms in the US cannot overlook.

Custodia Bank CEO Caitlin Long Slams Regulators

The Chief Executive Officer of Custodia Bank, Caitlin Long, has criticized regulators and lawmakers in Washington, D.C. for their “misguided crackdown” on the cryptocurrency industry and for ignoring her warnings of major “fraud” allegedly committed by now-defunct entities. Long claims that the regulators and lawmakers ignored her warnings of major “fraud” that was allegedly committed by now-defunct entities. She referred to this kind of regulation of the bitcoin business as a “misguided crackdown.”

Long criticized the government for its approach to crypto regulation in a blog post that was published on February 17, 2019, and titled “Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle.” In the post, Long claimed that the government’s approach failed to protect investors and alienated good actors in the space. Long said that “Washington’s misdirected enforcement would just drive dangers into the shadows, allowing regulators to play whack-a-mole as the risks repeatedly show up in unexpected areas.”

Long stressed that with her digital asset custody firm, she has “been calling out the worst of crypto while attempting to establish a legal, compliant alternative that relegates scams to the trash bin.” This is something that she has been doing for quite some time. Since quite some time, she has been consistently engaging in this activity. On the other hand, it seems that the vast majority of politicians in today’s world are intent on eradicating the innovators who maintain high standards of honesty.

She made the allegation that her attempts to collaborate with governmental bodies were finally flung back in her face. She is the chief executive officer of Custodia Bank, and she was just so happening to be recounting a string of unfavorable run-ins her company has had in recent times when she made the allegation.

US Congress needs to take control of crypto legislation

According to Kristin Smith, CEO of the Blockchain Association, a prominent U.S. crypto industry nonprofit, the United States Congress needs to take control of crypto legislation and make it a more “open process” where the entire marketplace is looked at “comprehensively.” This recommendation comes from Smith, who serves as the president of the Blockchain Association.

During an interview with Bloomberg on February 22, 2019, Smith said that the cryptocurrency business need U.S. politicians to lead crypto legislation, despite the fact that this would make the process “extremely long.” In the meanwhile, regulators will “step in.”

Smith mentioned that despite regulators “moving very quickly,” progress on legislation is happening “behind closed doors,” implying that it is essential for more industry involvement in a “open process,” which would involve Congress. He said this to suggest that it is vital for more industry involvement in a “open process.”

Smith is of the opinion that “very particular facts and circumstances” are at the root of the problem with legislators taking the lead on legislation via enforcement actions and settlements.

She stated that it is a tough situation for Congress to be in at the present due to the fact that many people in Washington, D.C. who “were close” to the former FTX CEO Sam Bankman-Fried and FTX feel “burned” and “betrayed” over the collapse of the cryptocurrency exchange in November 2022.

Smith is optimistic that stablecoin legislation will soon be implemented in the United States because, according to Smith, Congress has been looking into it “since 2019” and “the work has been done.” She said that it “came close” to occurring the year before, just before to the failure of FTX.

She went on to say that the dangers associated with cryptocurrencies are distinct from those associated with conventional financial services, and that as a result, regulators need to spend more time looking at market regulation and “tailor to those risks.”

Smith suggested that stablecoin and “market side” regulation should be a higher priority than focusing on legislating crypto-related criminal activity, saying that public ledgers make it “much more transparent” than what we see in the traditional financial system. This idea stemmed from Smith’s assertion that stablecoins and “market side” regulation were more important than focusing on legislating crypto-related criminal activity.

This comes after the chief policy officer of the Blockchain Association, Jake Chervinsky, took to Twitter on February 15 to state that regardless of how many enforcement actions the Securities and Exchange Commission and the Commodity Futures Trading Commission bring, they are “bound by legal reality.” Chervinsky also stated that “neither” has the authority to “comprehensively regulate crypto.” This news comes after Chervinsky made these statements.