Cryptocurrency: Key Areas of Concern For Attorneys
Cryptocurrency is a rapidly evolving area and certainly will impact attorneys in the E&O space. Attorneys must understand what cryptocurrency is and how it works. Current law does not provide any federal agency with plenary authority over cryptocurrency. Various agencies (the SEC, CFTC, IRS, and DOJ) are promulgating guidance and engaging in enforcement actions. This patchwork approach creates uncertainty and can be a minefield for attorneys offering advice in this space. The increasing popularity of cryptocurrency combined with its regulatory uncertainty has also created a situation in which attorneys may feel pressure to accept digital coins as a form of payment, but face increased risks and ethical pitfalls when doing so.
Areas of concern involve whether initial coin offerings (ICOs) could be classified as a securities, fraud, tax implications and potential ethical issues with attorneys accepting payment in bitcoin and other cryptocurrencies...Read Full Article