Investing in Crypto While in Biglaw Forum

[Anonymous User]

Incoming first-year here. I am interested in including a small amount of crypto as part of my investment portfolio, and I'm curious about biglaw's policies on crypto investing.

My firm's policy on securities is basically to get approval from conflicts before trading, and no trading securities of firm's clients, which I understand is pretty typical for stocks. But I'm not sure how that applies to crypto, and conflicts will not answer specific questions on securities trading before we start at the firm.

For those of you who are also interested in crypto investing, what have been the crypto-investing policies of your firm(s)?

Thanks!

[nealric]

I think you misspelled "speculating"

But I don't think buying crypto is an issue in biglaw. The main issue with trading public companies is that a biglaw lawyer is likely to have access to material non-public information they can use to trade (such as impending merger or significant litigation liability). The policies are there to prevent conflicts and insider trading. Crypto doesn't have the same regulatory or conflicts concerns.

If you are worried about your firm's specific policies, it can't hurt to ask.

[Anonymous User]

S&C's trading policy prohibits transacting in crypto and digital tokens (NFTs). I don't know how the firm would ever find out about someone buying crypto or NFTs, and I think many associates aren't even aware of this policy.

I'm very curious to know if any other firms have something similar. People I know at other firms think it is an insane policy.

[Anonymous User]

and I think many associates aren't even aware of this policy.

Not as S&C but can confirm I didn't even look for a policy when I bought crypto. I do for regular trading because that's the whole basis of the policy. Didn't even think to check for crypto. Whoops.

[Anonymous User]

DPW’s policy also applies to crypto.

[Anonymous User]

S&C's trading policy prohibits transacting in crypto and digital tokens (NFTs). I don't know how the firm would ever find out about someone buying crypto or NFTs, and I think many associates aren't even aware of this policy.

I'm very curious to know if any other firms have something similar. People I know at other firms think it is an insane policy.

Think Debevoise has this as well.

[Anonymous User]

Skadden's policy applies to crypto as well. Pretty ridiculous.

[Anonymous User]

I don’t even know if my firm has a policy on crypto, but I’ve still invested and will continue to invest in it for three reasons: (1) there’s no way they could find out if I buy it; (2) I plan on holding on to it longer than I’m at the firm; and (3) if (2) doesn’t apply, that means it’s gone up to the point where me cashing in means I don’t have to work at the firm anymore.

[CanadianWolf]

OP: I cannot answer your question, but I can share that crypto has an important tax benefit if you need a write-off and currently have a crypto related loss.(Ask your tax advisor for further details.)

My reason for pointing this out is that crypto can be a great tax tool for those with consistently high tax bills--especially when crypto acts in a highly volatile manner.

[Anonymous User]

Cleary's recently updated policy puts restrictions on cryptos other than Bitcoin and Ethereum.

The partnership has seen the writing on the wall, but probably too late -- the combination of special bonuses and the Doge surge has resulted in a mass of savvy associates who no longer need biglaw to foot their Equinox bills (many looking to leave the law or even retire).