Blockstack Received SEC’s Approval
After a series of crackdowns on various token offering platform for their ICOs, the US SEC has finally pressed the go-ahead buzzer to Blockstack under Regulation A+ (Reg A+). Accordingly, Blockstack becomes the first-ever platform that has been approved by SEC for a token offering. Reg A+ is a different track and an alternative to an initial public offering that enables small companies to raise money publicly. After this; Blockstack can conduct a $28 million digital token offering sale to raise funds from the public.
The news was announced on Wednesday wherein the Blockstack founder Muneeb Ali told the media (Wall Street Journal), that the process of token offering is costly and still very long. Muneeb further claimed that he and another founder Ryan Shea’s spending of $2 million to get approval for the sale. This is because SEC had to devise a “brand new protocol” for such offering under Reg A+ and it is something new that SEC had never done before.
A Big Win
Talking about this, Muneeb Ali elaborates that;
“It is a truly groundbreaking day for decentralized technology and, by extension, digital rights. No company on the internet should have so much power that it can debate if it should treat users in the right way or not. By building technology that can’t be evil, trusting centralized organizations to make the right choice is replaced by mathematical proofs.”
After a series of crackdowns, Blockstack is the first company that got favors from SEC – in contrast; SEC has already voiced over $100 Million ICO, proposed by messaging app Kik.
This exciting news in an environment where Crypto prices are experiencing sudden downfall was received as a big win by the crypto community. In fact, few prominent crypto leaders such as the founder of Morgan Creek Capital, Anthony Pompliano took to Twitter. Anthony tweeted:
HERE WE GO!
@blockstack was just approved by the SEC to hold the first regulated token offering under Reg A+.
Finally non-accredited investors can participate in investments that previously were only open to the rich.
The laws need to change, but this is next best thing 🙏🏽
— Pomp 🌪 (@APompliano) July 10, 2019
Also, another well-known leader, Jake Chervinsky, who often talks about the crypto industry from the perspective of SEC and other legal matters, wrote about Blockstack and pointed it as “Huge News.”
🚨 Huge news: the SEC has approved @blockstack's Reg A+ application to issue STX tokens in a public securities offering.
This is the *first ever* SEC-approved token issuance & a huge step for the crypto industry. Congrats to @muneeb & team — thanks for blazing the path forward!
— Jake Chervinsky (@jchervinsky) July 10, 2019
Earlier to this report, Blockstack had raised about $47 million via previous token offering under a different provision called Reg D. According to the reports, this provision doesn’t require approval from SEC and is only limited to accredited investors whereas Reg A+ provision is open for everyone. Any individual or company can partake in a token sale approved under Reg A+ provision.
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