Blockstack, the open-source decentralized computing platform, has been given permission by the U.S. Securities and Exchange Commission (SEC) to offer a cryptocurrency token. The one-off approval for a “regulated” token paves the way for Blockstack to move forward with trying to secure $28 million in funding and could possibly indicate a changing sentiment among regulators in the country.
Anthony Pompliano was one of many to take to social media and announce the approval, stating on Twitter, “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 [the] next best thing.”
According to an article in the Wall Street Journal, in order to secure approval, Blockstack had to spend about $2 million. That money went toward the creation of an entirely new protocol for a digital token offering, which was a requirement for Blockstack to be able to be listed under Reg A+ guidelines.
Blockstack had previously announced the possibility of launching a token sale, for which it hoped to raise as much as $50 million. It filed with the SEC in April to issue Blockstack Stacks (STX) tokens, a type of blockchain-issued security that is more flexible than what is typically found in an initial public offering (IPO).
Being able to receive approval so quickly – less than three months for the SEC to weigh in a surprise – could be a sign that the financial regulator is trying to appear to be more open to crypto-based offerings.
It has repeatedly come out against any type of crypto exchange-traded fund (ETF) and recently asserted that it would be difficult for any crypto-based securities product to be approved.