SEC Approves First Blockchain Firm for Regulation A+ Funding
- The company already raised $52 million from accredited investors and VCs.
The Securities and Exchange Commission (SEC) has approved Blockstack, a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based startup, for a $28 million token offering under Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term A+ framework.
According to the press release, the company will initiate the sale on Thursday and can legally raise funds from retail investors within the United States and other global markets.
Under Regulation A+, the SEC is allowing early-stage companies to raise funds up to $50 million from retail investors, and unlike initial public offering (IPO), it has lenient disclosure obligations.
Though many startups raised funds under this investment route, Blockstack has become the first blockchain-based company to get approval for this.
According to Blockstack, the company has worked with the regulator to establish a legal framework for security token offerings (STOs). Its co-founders also revealed that the process was expensive and the company spent $2 million for the approval for the sale.
“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,” Muneeb Ali, co-founder and chief executive of Blockstack, said.
A well-funded blockchain company
Blockstack is developing a decentralized computing network that supports over 160 decentralized applications. It will distribute tokens called Stacks (STX) to its investors, which can be used to register digital assets like domain names, inscribe and enact smart contracts, and process transaction fees.
In a token sale in 2017, the company raised $47 million under the Regulation D framework of the SEC, which permits only accredited investors to put money in a company. Companies raising funds under Regulation D, however, do not need approval from the market regulator. Blockstack also raised another $5 million from venture capitals.
The Securities and Exchange Commission (SEC) has approved Blockstack, a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based startup, for a $28 million token offering under Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term A+ framework.
According to the press release, the company will initiate the sale on Thursday and can legally raise funds from retail investors within the United States and other global markets.
Under Regulation A+, the SEC is allowing early-stage companies to raise funds up to $50 million from retail investors, and unlike initial public offering (IPO), it has lenient disclosure obligations.
Though many startups raised funds under this investment route, Blockstack has become the first blockchain-based company to get approval for this.
According to Blockstack, the company has worked with the regulator to establish a legal framework for security token offerings (STOs). Its co-founders also revealed that the process was expensive and the company spent $2 million for the approval for the sale.
“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,” Muneeb Ali, co-founder and chief executive of Blockstack, said.
A well-funded blockchain company
Blockstack is developing a decentralized computing network that supports over 160 decentralized applications. It will distribute tokens called Stacks (STX) to its investors, which can be used to register digital assets like domain names, inscribe and enact smart contracts, and process transaction fees.
In a token sale in 2017, the company raised $47 million under the Regulation D framework of the SEC, which permits only accredited investors to put money in a company. Companies raising funds under Regulation D, however, do not need approval from the market regulator. Blockstack also raised another $5 million from venture capitals.