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What kind of impact can Biden’s executive order on cryptocurrency have for the Opportunity Zone industry?

Will we be able to invest using digital funds?


Answers
  • Matthew Rappaport
    March 21, 2022

    The executive order is unlikely to have any impact on the OZ part at all. The rules already allow some level of activity with digital assets, but as I've mentioned publicly in this forum and several others, the OZ program is not well-suited to cryptocurrencies and NFTs unless you're using them in a legitimate trade or business. For instance, if you're in the trade or business of minting NFTs and you do the work of designing the artwork and the blockchain from an Opportunity Zone, that should be OK. But my opinion is that mining or staking crypto, serving as a dealer in NFTs, or day-trading DAO tokens, this is probably not OK. Even if you follow all the technical rules, the optics are horrible and you might run afoul of the anti-abuse regulations.

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