SEC Sanctions Paragon and CarrierEQ, Provides ICO Model for Compliance
On Friday November 16, 2018, the SEC announced settlements with two cryptocurrency startups, which conducted unregistered offerings of digital tokens in 2017. In announcing the settlement of these two cases, out of more than 100 active SEC investigations of unregistered ICOs, SEC Co-Director of Enforcement Steven Peikin observed, “These orders provide a model for companies that have issued tokens in ICOs and seek to comply with the federal securities laws.” Read more here and here.
New Opportunity Zone Rules Get Developers and Fund Managers Really Excited
Opportunity Zone investments could be “the biggest thing to hit the real-estate world in perhaps the past 30 or even more years,” says Bruce Stachenfeld of law firm Duval & Stachenfeld. Treasury Secretary Steven Mnuchin predicted the zones will attract over $100 billion in private capital. Family offices and individual investors with built-up gains in stocks, property, and/or businesses that are ready to be sold are some of the targets of fund sponsors.
In October 2018, the U.S. Department of the Treasury issued rules governing the December 22, 2017 Tax Cuts and Jobs Act, which created a new section of the Tax Code (26 U.S. Code § 1400Z) that provides significant tax incentives for investors in an “Opportunity Fund” that invests at least 90% of its capital in qualified “Opportunity Zone” projects in the United States. Read more:
WSJ November 17, 2018
WSJ November 18, 2018
Fundrise: Opportunity Zone Investment Guide
IRS: Investing in Qualified Opportunity Finds