Lawyers Media News

Law Marketing Topics for May 3, 2022

Good legal information on cryptocurrency investments is worth its weight in gold.

Law firms with estate planning and wealth management practices should look hard at publishing explainers on the tax consequences of transactions in Bitcoin, Ethereal, and similar cryptocurrencies.

Mainstream interest in cryptocurrencies exploded in 2021, with little sign of abating.

In the United States, the Internal Revenue Service has issued scant guidance on cryptocurrency transactions. According to the IRS, a taxable transaction occurs whenever a cryptocurrency investment is sold or exchanged for another investment. Beyond these scenarios, however, certainty ends. And cryptocurrency investors are required to keep their own records -- unlike transactions with traditional investment firms, crypto exchanges don't report transactions to the IRS.

Today the cryptocurrency advice market is being flooded with new entrants. Clients will -- and should -- expect that their current legal advisors are prepared to explain the legal and strategic challenges related to cryptocurrency investments. Regular publication of legal information in this area will send a reassuring signal that existing clients are in good hands when it comes to these investments. They're also a great way to start a conversation with prospective clients.