diff --git a/client/tx/legacy.go b/client/tx/legacy.go
index 71f0fe8c4eeb..62cbf9b7b434 100644
--- a/client/tx/legacy.go
+++ b/client/tx/legacy.go
@@ -19,7 +19,7 @@ func ConvertTxToStdTx(codec *codec.LegacyAmino, tx signing.Tx) (legacytx.StdTx,
 	aminoTxConfig := legacytx.StdTxConfig{Cdc: codec}
 	builder := aminoTxConfig.NewTxBuilder()
 
-	err := CopyTx(tx, builder)
+	err := CopyTx(tx, builder, true)
 	if err != nil {
 
 		return legacytx.StdTx{}, err
@@ -34,8 +34,9 @@ func ConvertTxToStdTx(codec *codec.LegacyAmino, tx signing.Tx) (legacytx.StdTx,
 }
 
 // CopyTx copies a Tx to a new TxBuilder, allowing conversion between
-// different transaction formats.
-func CopyTx(tx signing.Tx, builder client.TxBuilder) error {
+// different transaction formats. If ignoreSignatureError is true, copying will continue
+// tx even if the signature cannot be set in the target builder resulting in an unsigned tx.
+func CopyTx(tx signing.Tx, builder client.TxBuilder, ignoreSignatureError bool) error {
 	err := builder.SetMsgs(tx.GetMsgs()...)
 	if err != nil {
 		return err
@@ -48,7 +49,13 @@ func CopyTx(tx signing.Tx, builder client.TxBuilder) error {
 
 	err = builder.SetSignatures(sigs...)
 	if err != nil {
-		return err
+		if ignoreSignatureError {
+			// we call SetSignatures() agan with no args to clear any signatures in case the
+			// previous call to SetSignatures() had any partial side-effects
+			_ = builder.SetSignatures()
+		} else {
+			return err
+		}
 	}
 
 	builder.SetMemo(tx.GetMemo())
@@ -58,6 +65,7 @@ func CopyTx(tx signing.Tx, builder client.TxBuilder) error {
 	return nil
 }
 
+// ConvertAndEncodeStdTx encodes the stdTx as a transaction in the format specified by txConfig
 func ConvertAndEncodeStdTx(txConfig client.TxConfig, stdTx legacytx.StdTx) ([]byte, error) {
 	builder := txConfig.NewTxBuilder()
 
@@ -67,7 +75,7 @@ func ConvertAndEncodeStdTx(txConfig client.TxConfig, stdTx legacytx.StdTx) ([]by
 	if _, ok := builder.GetTx().(legacytx.StdTx); ok {
 		theTx = stdTx
 	} else {
-		err := CopyTx(stdTx, builder)
+		err := CopyTx(stdTx, builder, false)
 		if err != nil {
 			return nil, err
 		}
diff --git a/client/tx/legacy_test.go b/client/tx/legacy_test.go
index 4884faa83c5e..704b3ac029f2 100644
--- a/client/tx/legacy_test.go
+++ b/client/tx/legacy_test.go
@@ -68,10 +68,10 @@ func (s *TestSuite) TestCopyTx() {
 	protoBuilder := s.protoCfg.NewTxBuilder()
 	buildTestTx(s.T(), protoBuilder)
 	aminoBuilder := s.aminoCfg.NewTxBuilder()
-	err := tx2.CopyTx(protoBuilder.GetTx(), aminoBuilder)
+	err := tx2.CopyTx(protoBuilder.GetTx(), aminoBuilder, false)
 	s.Require().NoError(err)
 	protoBuilder2 := s.protoCfg.NewTxBuilder()
-	err = tx2.CopyTx(aminoBuilder.GetTx(), protoBuilder2)
+	err = tx2.CopyTx(aminoBuilder.GetTx(), protoBuilder2, false)
 	s.Require().NoError(err)
 	bz, err := s.protoCfg.TxEncoder()(protoBuilder.GetTx())
 	s.Require().NoError(err)
@@ -83,10 +83,10 @@ func (s *TestSuite) TestCopyTx() {
 	aminoBuilder = s.aminoCfg.NewTxBuilder()
 	buildTestTx(s.T(), aminoBuilder)
 	protoBuilder = s.protoCfg.NewTxBuilder()
-	err = tx2.CopyTx(aminoBuilder.GetTx(), protoBuilder)
+	err = tx2.CopyTx(aminoBuilder.GetTx(), protoBuilder, false)
 	s.Require().NoError(err)
 	aminoBuilder2 := s.aminoCfg.NewTxBuilder()
-	err = tx2.CopyTx(protoBuilder.GetTx(), aminoBuilder2)
+	err = tx2.CopyTx(protoBuilder.GetTx(), aminoBuilder2, false)
 	s.Require().NoError(err)
 	bz, err = s.aminoCfg.TxEncoder()(aminoBuilder.GetTx())
 	s.Require().NoError(err)
@@ -108,6 +108,23 @@ func (s *TestSuite) TestConvertTxToStdTx() {
 	s.Require().Equal(sig.PubKey, stdTx.Signatures[0].PubKey)
 	s.Require().Equal(sig.Data.(*signing2.SingleSignatureData).Signature, stdTx.Signatures[0].Signature)
 
+	// SIGN_MODE_DIRECT should fall back to an unsigned tx
+	err = protoBuilder.SetSignatures(signing2.SignatureV2{
+		PubKey: pub1,
+		Data: &signing2.SingleSignatureData{
+			SignMode:  signing2.SignMode_SIGN_MODE_DIRECT,
+			Signature: []byte("dummy"),
+		},
+	})
+	s.Require().NoError(err)
+	stdTx, err = tx2.ConvertTxToStdTx(s.encCfg.Amino, protoBuilder.GetTx())
+	s.Require().NoError(err)
+	s.Require().Equal(memo, stdTx.Memo)
+	s.Require().Equal(gas, stdTx.Fee.Gas)
+	s.Require().Equal(fee, stdTx.Fee.Amount)
+	s.Require().Equal(msg, stdTx.Msgs[0])
+	s.Require().Empty(stdTx.Signatures)
+
 	// std tx
 	aminoBuilder := s.aminoCfg.NewTxBuilder()
 	buildTestTx(s.T(), aminoBuilder)
@@ -127,7 +144,7 @@ func (s *TestSuite) TestConvertAndEncodeStdTx() {
 	decodedTx, err := s.protoCfg.TxDecoder()(txBz)
 	s.Require().NoError(err)
 	aminoBuilder2 := s.aminoCfg.NewTxBuilder()
-	s.Require().NoError(tx2.CopyTx(decodedTx.(signing.Tx), aminoBuilder2))
+	s.Require().NoError(tx2.CopyTx(decodedTx.(signing.Tx), aminoBuilder2, false))
 	s.Require().Equal(stdTx, aminoBuilder2.GetTx())
 
 	// just use amino everywhere