What Language Does a Power of Attorney Need to Cover Digital Assets?
A power of attorney written a decade ago was designed around bank accounts, real estate, and physical property — categories that rarely anticipated a wallet secured entirely by a string of words only its owner knows.
The short answer
A power of attorney intended to cover cryptocurrency generally needs explicit language naming digital assets, cryptocurrency accounts, exchange holdings, and private keys or seed phrases as property the agent has authority over. Many older or generic power of attorney templates don’t address digital assets at all, and without specific authorization, an agent may find that exchanges, wallet providers, or even courts are reluctant to recognize authority that isn’t clearly spelled out.
Why generic language often isn’t enough
Traditional power of attorney documents were drafted with tangible and institutional assets in mind — bank accounts, brokerage holdings, real property — categories that financial institutions have decades of established procedures for recognizing. Cryptocurrency doesn’t fit neatly into those categories, and many states have only recently begun addressing digital assets in their power of attorney statutes. Because of this, an agent presenting a power of attorney that never mentions “digital assets” or “cryptocurrency” to an exchange may face delays or outright refusal, even if the document’s broader language seems like it should cover everything.
What effective digital asset language typically includes
- Explicit reference to digital assets and cryptocurrency, naming the category directly rather than relying on catch-all language like “all property.”
- Authority to access accounts and platforms, including exchange accounts, wallets, and any associated login credentials.
- Authority over private keys and seed phrases, since these function as the actual means of controlling the asset rather than just account access.
- Reference to applicable state law, since many states have adopted versions of the Revised Uniform Fiduciary Access to Digital Assets Act, which specifically addresses an agent’s authority over digital property.
How this differs from naming a beneficiary
A power of attorney grants authority to act on someone’s behalf while they are alive, typically in the event of incapacity — it is not the same as estate planning for what happens to crypto after death, which is instead handled through a will, trust, or beneficiary designation. Both may be necessary: a power of attorney to manage assets during incapacity, and separate documentation to address transfer after death, since an executor’s legal authority to act typically comes from probate rather than a power of attorney, which generally terminates at death.
The unique challenge of private keys
Even a well-drafted power of attorney only grants legal authority — it doesn’t solve the practical problem of actually locating and accessing self-custodied crypto. If private keys aren’t documented somewhere the agent can find and use them, legal authority alone won’t help, since there is no institution to call for a reset. This is part of why planning a crypto inheritance strategy without prematurely sharing private keys is a distinct challenge from drafting the legal document itself — the two need to work together.
What to weigh
A power of attorney that doesn’t name digital assets explicitly may leave an agent unable to act when it matters most, since institutions and courts often look for specific authorization rather than inferring it from broad language. Because rules vary by state and continue to evolve, and because the practical challenge of key access is separate from the legal authority itself, working with an attorney familiar with digital assets — and keeping access information updated as holdings change — tends to matter more here than with more conventional property.