A Bitcoin ETF may not be on its way, but this does not mean that the SEC is not working towards accepting the ever-growing crypto/blockchain space. This time, a very major “first” is now a reality.
According to a report from The Wall Street Journal, the SEC has granted an approval for a $28 million Reg A+ offering for Blockstack, a decentralized Internet company. The company will begin selling its tokens on July 11th, 2019. The selling will be made through a website specially created for the token offering.
It is very notable that the SEC is granting such an approval for funding through token offering, since this can allow plenty of small US businesses to consider raising capital in the same manner. Another thing is that the reputation of the SEC is not particularly “crypto” friendly, so such a move can signal that positive crypto changes are coming and the US regulator is looking to change the vague regulatory scene.
The founders of Blockstack, Ryan Shea and Muneeb Ali, shared with the WSJ reporter Mr. Paul Vigna that the two of them have spent the staggering amount of $2 million to get the actual approval for the token sale.
Mr. Ali said it took so long and cost so much because the company and the SEC had to start from scratch to create a protocol for a digital-token offering under Reg A+.
Another interesting element to this story is the actual Reg A+platform that allows businesses to raise up to $50 million not only from accredited investors but also from retail ones, which is a huge advantage for companies.
Up until now, Blockstack has raised $47 million from a token sale in 2017 and another $5 million from venture capitalists.