US SEC Approved the First-Ever Token Offering In HistoryBy Jul 11, 2019 2 Min Read
The United States Securities and Exchange Commission (SEC) approved the first token offering to blockchain-based startup Blockstack under the SEC Regulation A+, as revealed in the company’s announcement. Blockstack will start its SEC-approved token sale of USD 28 mn today.
The Regulation A offers an exemption from registration for public offerings. It consists of two offering tiers. Tier 1 requires the offering of up to $20 million in a 12-month period, while Tier 2 requires the offering of up to $50 million in a 12-month period.
There are additional requirements for Tier 2 such as a limitation on the amount of money for non-accredited investors to invest in the offering, and requirements for reports such as audited financial statements and the filing of ongoing reports. Issuers in Tier 2 offerings are not required to register their offerings with state securities regulators.
Blockstack Co-founder, Muneeb Ali said “This is the first time in U.S history that a crypto token offering has received SEC qualification. We believe this is a huge step forward for decentralized applications, internet security, and privacy.” He added “Only accredited investors could participate in our 2017 offering under Regulation D. Now, thanks to this SEC-qualified offering, the general public can participate and fully interact with our network.”
The Blockstack network currently supports more than 165 applications with startups such as Dmail, the decentralized email solution firm and Graphite Docs, the decentralized document management service firm that aims to protect the privacy and freedom of speech for jeopardized group.
Thumbnail image credit: Shutterstock, US SEC, Blockstack