The U.S. Securities and Exchange Commission recently made history when it green-lighted two token offerings under Regulation A+. “This is the first time in U.S. history that a crypto token offering has received SEC qualification,” one of the two qualified issuers proclaims.
Historic Event for Crypto Industry
The U.S. Securities and Exchange Commission (SEC) began qualifying token offerings under Regulation A+ (Reg A+) last week. The application by Blockstack PBC was approved on July 10 for Stacks tokens. The other application was approved the following day for Props tokens by Younow, a live streaming app which claims to have 46 million users.
Under the U.S. Securities Act of 1933, companies seeking to offer or sell securities to potential investors must either register the offer and sale or qualify for a registration exemption, such as under Regulation A.
The Jumpstart Our Business Startups (Jobs) Act, signed into law by former President Barack Obama on April 5, 2012, directed the SEC to amend the Securities Act and expand exemptions provided by Regulation A. The resulting final rules, often referred to as Reg A+, were adopted by the commission on March 25, 2015, and became effective on June 19 of the same year. The exemptions are aimed at facilitating small companies’ access to capital. However, the SEC never approved any token issuers’ Reg A+ applications until now.
Muneeb Ali, co-founder of decentralized app ecosystem Blockstack and CEO of Blockstack PBC, announced on July 10 that his company’s “upcoming token offering has been qualified by the SEC under Regulation A+,” elaborating:
This is the first time in U.S.