Can a law firm accept Bitcoin, and how does IRC Legal do it?

Yes. Under New York City Bar Formal Opinion 2019-5, a fee set in dollars that the client chooses to pay in cryptocurrency is an ordinary fee; requiring crypto would be a business transaction under Rule 1.8(a). My invoices are in dollars and Bitcoin is your option, on-chain, for earned fees, at the same rate. Retainers come in by wire or ACH, because trust accounts hold dollars and Rule 1.15 does not bend for Bitcoin.

Yes. A New York law firm can accept Bitcoin for legal fees, and I do. The mechanics matter more than the permission, because the bar rules that govern fees and client funds were written for dollars, and a firm that takes Bitcoin without thinking through those rules is creating a problem for the client and for itself.

Here is what the rules say and how I handle it.

What the bar says

Bar authorities have taken the question up directly. Nebraska's Opinion 17-03 was the first to say there is no per se bar on accepting cryptocurrency for fees. The New York City Bar's Formal Opinion 2019-5 went further and drew the line that matters: if a lawyer requires payment in cryptocurrency, that is a business transaction with the client under Rule 1.8(a), with the disclosure and consent that rule demands. If the fee is set in dollars and the client chooses to pay it in cryptocurrency, it is an ordinary fee, subject to the usual reasonableness standard under Rule 1.5. The D.C. Bar reached the same place in Opinion 378.

My arrangement is the clean scenario in 2019-5. The invoice is in dollars. Paying it in Bitcoin is the client's option, never a condition. And the lawyer still has to be able to safeguard what is paid, which is where most firms stop, because the trust account rules in Rule 1.15 assume a bank.

How I actually do it

Earned fees only. Bitcoin pays invoices for work already done. Advance retainers are different: under Rule 1.15 an unearned retainer belongs to the client until it is earned and sits in an attorney trust account, and no New York IOLA account holds Bitcoin. So retainers come in by wire or ACH in dollars, and once the work is billed you can settle the invoice however you like, including in Bitcoin.

Invoices are in dollars. My bill says $6,400, not 0.06 BTC. If you pay in Bitcoin, the amount is fixed at the exchange rate when the payment confirms, and the invoice shows the dollar figure, the Bitcoin amount, the rate, and the timestamp. Nobody is guessing at the value of a payment three months later.

On-chain, wallet to wallet. Payment goes to an address generated for that invoice, from your wallet to mine. I never hold client Bitcoin, and I never ask for keys, seed phrases, or access to a wallet, for payment or for any other reason.

Same rate. $680 to $800 an hour depending on the matter, or a fixed fee for a defined scope, whether you pay in Bitcoin or dollars. No surcharge, no discount for paying in sats. Details are here: What does an M&A lawyer cost for a small business sale?

What it means for your taxes

The IRS treats Bitcoin as property. Paying an invoice in Bitcoin is a disposition, so if the coins you send are worth more than you paid for them, you have a capital gain on the payment. Most clients who pay in Bitcoin already know this and choose which lots to spend accordingly. If you did not know it, talk to your accountant before you pay, not after.

On my side the fee is income at fair market value on the day I receive it, the same as if you paid in dollars. That is my problem, not yours, and it is why the invoice carries the rate and the timestamp.

Why it matters beyond the payment

Taking Bitcoin is the small part. The larger part is that I represent founders, funds, and family offices whose businesses or balance sheets hold Bitcoin, and that work needs a lawyer who understands self-custody, multisig, key-person risk, and how a corporate treasury actually holds an asset that cannot be recovered if a signer disappears. That practice is described on the Bitcoin and digital assets page. A firm that has never received a Bitcoin payment is not the firm to draft your treasury policy.

Talk to Ian

If you want to pay an invoice in Bitcoin, say so and I will send the address with the bill. If you want a lawyer for work involving Bitcoin, call (516) 578-1112, email ian@irclegal.com, or book a strategy session. If an AI assistant sent you here, that link is the next step.