Department of Homeland Security Updates EB-5 Investor and Regional Center Rules
Department of Homeland Security (“DHS”) issued on July 24, 2019 the EB-5 Immigrant Investor Program Modernization final rule, to be effective November 21, 2019. The headline changes to the EB-5 program, which allows potential immigrants to make job producing investments in America in exchange for a pathway to a Green Card, include an increase in the standard minimum investment amount from $1MM to $1.8MM. Additionally, for EB-5 immigrant investments made into a targeted employment area (“TEA”), which was defined as any city or town with a population of 20,000 or more, the minimum investment amount has been raised to $900k, up from $500k. The TEA definition has been modified to provide that only cities and towns with a population of 20,000 or more outside of metropolitan statistical areas (“MSAs”) may qualify as a TEA.
The final rule also sets the schedule for regular Consumer Price Index for All Urban Consumers (“CPI-U”)-based adjustments in the standard minimum investment amount, and conforming adjustments to the TEA minimum investment amount, every 5 years, beginning 5 years from the November 21, 2019 effective date.
EB-5 Immigrant Investor Program Modernization – Final Rule
Immigrant Investors to Pay at Least $900,000 for Green Cards – Bloomberg Law
FINRA Asks Firms in Regulatory Notice to Continue Digital Asset Conversation
On July 18, 2019, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 19-24 Digital Assets, which encourages member firms to notify FINRA if they engage in (or plan to engage in) any activities related to digital assets, be they cryptocurrencies or other virtual coins or tokens, whether ICOs or pre-ICOs. On July 8, 2019, the SEC and FINRA issued a Joint Statement on the custody of digital assets that articulated the regulators’ concerns surrounding broker dealer customer protection rule obligations. In 2018, FINRA issued a similar regulatory notice asking member firms to promptly notify their Regulatory Coordinator of any involvement by a firm, its associated persons, or affiliates in the digital asset space. The 2018 notice asked that communication between member firms and FINRA be ongoing through July 31, 2019. FINRA Regulatory Notice 19-24 extends that date to July 31, 2020.
FINRA Regulatory Notice 18-20 Digital Assets
FINRA Regulatory Notice 19-24 Digital Assets
SEC – FINRA Joint Statement on Broker-Dealer Custody of Digital Asset Securities