May a Missouri lawyer accept cryptocurrency for legal fees through a conversion service?

Plain-English summary

The proposed arrangement called for the client to pay fees at the end of the representation in cryptocurrency through a third-party service that would convert the asset to U.S. dollars at the point of sale and transfer the money to an appropriate account.

The opinion treats cryptocurrency like other property used to pay legal fees. The fee must be reasonable under Rule 4-1.5(a). Because cryptocurrency value can fluctuate and property fees may have the characteristics of a business transaction with a client, the lawyer must also provide the protections in Rule 4-1.8(a).

Those protections require fair and reasonable terms disclosed in understandable writing, written advice that seeking independent legal counsel is desirable and a reasonable opportunity to obtain that advice, and the client's informed consent in a signed writing to the essential terms and the lawyer's role.

Because the arrangement requires a third-party conversion service, the opinion limits it to earned fees that do not go into a client trust account. It does not permit use for advance fees or expenses that Rule 4-1.15(a) requires the lawyer to hold in trust.

In practice

Under this opinion, cryptocurrency payment is a property transaction as well as a fee arrangement. The timing of when the fee is earned determines whether the proposed conversion process is available: earned fees may qualify, while advance fees and expenses held for the client do not.

Common questions

Q: May a Missouri lawyer accept cryptocurrency for an earned fee?

A: Yes. The opinion permits it when the fee is reasonable and the lawyer complies with Rule 4-1.8(a).

Q: Why does Rule 4-1.8(a) apply?

A: Cryptocurrency is property, its value may fluctuate, and a property fee can have the essential qualities of a business transaction with the client.

Q: What written protections does the client receive?

A: Understandable written terms, written advice about seeking independent counsel and a reasonable opportunity to do so, and signed informed consent to the essential terms and the lawyer's role.

Q: May the same service process advance fees or expenses?

A: No. The opinion limits the arrangement to earned fees and excludes advance fees and expenses that must be held in a client trust account under Rule 4-1.15(a).

Background and rules framework

Rule 4-1.5(a) requires a reasonable fee. Comment [4] to Rule 4-1.5 identifies property payment as a possible client business transaction, bringing Rule 4-1.8(a)'s fairness, disclosure, independent-counsel, and written-consent requirements into the analysis. Rule 4-1.15(a) governs advance fees and expenses held in trust.

Citations and references

Rules of Professional Conduct:

• Missouri Rule 4-1.5(a) and Comment [4] (reasonable fees and payment in property)
• Missouri Rule 4-1.8(a), Comments [1] through [4] (business transactions with clients)
• Missouri Rule 4-1.15(a) (advance fees and expenses in trust)

Other opinions cited:

• Missouri Informal Opinion 20050041: property payments and Rule 4-1.8(a)
• Missouri Informal Opinion 2023-09: advance fees and trust accounts

See also

• Georgia Formal Advisory Op. 91-2: Advance Fees and Operating Accounts
• Virginia Ethics Op. 1606: Fees, Retainers, and Trust Accounts
• Missouri Formal Op. 125: Settlement Funds and Client Debts

Source

• Landing page: Missouri Informal Opinion 2025-04

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Question: Lawyer would like to accept cryptocurrencies as payment of fees through Lawyer’s website. Lawyer would make an agreement with the Client at the beginning of the representation that Client will pay Lawyer’s fees at the conclusion of the representation with cryptocurrency. Lawyer would like to use a service to convert those cryptocurrency payments into U.S. Dollars at the point of sale and then transfer them to an appropriate account. Lawyer asks how to do so to comply with the Missouri Rules of Professional Conduct.

Answer: Lawyer may accept cryptocurrency for payment of earned fees. Cryptocurrency should be handled the same as any other payment of fees through property, and the fee must meet the reasonableness standard of Rule 4–1.5(a). Rule 4–1.5, Comment [4], provides that “a fee paid in property instead of money may be subject to the requirements of Rule 4–1.8(a) because such fees often have the essential qualities of a business transaction with the client.” Since the value of the cryptocurrencies may fluctuate, Lawyer should ensure that Client receives the protections of Rule 4–1.8(a), which requires:

(a) A lawyer shall not enter into a business transaction with a client or knowingly acquire an ownership, possessory, security, or other pecuniary interest adverse to a client unless:

(1) the transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed and transmitted in writing in a manner that can be reasonably understood by the client;

(2) the client is advised in writing of the desirability of seeking and is given a reasonable opportunity to seek the advice of independent legal counsel on the transaction; and

(3) the client gives informed consent, in a writing signed by the client, to the essential terms of the transaction and the lawyer’s role in the transaction, including whether the lawyer is representing the client in the transaction.

Lawyer should also review Comments [1] – [4] of Rule 4–1.8 for additional guidance, as well as Missouri Informal Opinion 20050041. Since a third-party service must be used to convert the cryptocurrency to U.S. Dollars for the payment to occur, such payments are only appropriate for earned fees that are not to be placed in a client trust account, not advance paid fees or expenses that would be held in a client trust account in accordance with Rule 4–1.15(a). See Missouri Informal Opinion 2023–09.