US-based investment crowdfunding platform SeedInvest, which was acquired last month by Blockchain start-up Circle, has received approval from FINRA to operate an Alternative Trading System (ATS).

The new authorization puts the Boston-based digital-asset exchange operator on a firmer regulatory footing and positions it to offer a broader range of blockchain-based securities. It also allows the platform to perform all operations in a regulatory compliant manner.

SeedInvest will also provide secondary market ‎liquidity for ICO tokens that are offered and sold as securities.

Founded in 2012, SeedInvest facilitates the equity-crowdfunding service through its platform, which allows retail investors to browse through different businesses and buy stakes depending on their eligibility. The New York-based firm will continue to operate separately under Circle’s umbrella.

The news was reported in a blog post by the Goldman-funded startup, which stated that the FINRA approval aims to enable firms to issue security tokens using blockchain while providing customers with greater access to invest in Cryptocurrencies .

After winning the regulatory approval, Circle is now capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

A response to US regulators

Circle, which is reportedly seeking to raise $250 million in new funding, has been plowing money back into areas other than its flagship exchange Poloniex. The company has recently expanded support to its USD Coin (USDC), a stablecoin pegged to the US dollar, adding more than 100 exchanges, wallets, platforms, apps, and service providers to the ecosystem.

Furthermore, the move is being seen as a response to US regulators classifying certain digital tokens as securities and therefore coming under the SEC’s supervision. Wall Street’s top watchdog says that ‎any entity that wants to become an ATS needs to register with the SEC as a broker-dealer and become a member of a self-regulating organization, such as the ‎FINRA.‎

US-based investment crowdfunding platform SeedInvest, which was acquired last month by Blockchain start-up Circle, has received approval from FINRA to operate an Alternative Trading System (ATS).

The new authorization puts the Boston-based digital-asset exchange operator on a firmer regulatory footing and positions it to offer a broader range of blockchain-based securities. It also allows the platform to perform all operations in a regulatory compliant manner.

SeedInvest will also provide secondary market ‎liquidity for ICO tokens that are offered and sold as securities.

Founded in 2012, SeedInvest facilitates the equity-crowdfunding service through its platform, which allows retail investors to browse through different businesses and buy stakes depending on their eligibility. The New York-based firm will continue to operate separately under Circle’s umbrella.

The news was reported in a blog post by the Goldman-funded startup, which stated that the FINRA approval aims to enable firms to issue security tokens using blockchain while providing customers with greater access to invest in Cryptocurrencies .

After winning the regulatory approval, Circle is now capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

A response to US regulators

Circle, which is reportedly seeking to raise $250 million in new funding, has been plowing money back into areas other than its flagship exchange Poloniex. The company has recently expanded support to its USD Coin (USDC), a stablecoin pegged to the US dollar, adding more than 100 exchanges, wallets, platforms, apps, and service providers to the ecosystem.

Furthermore, the move is being seen as a response to US regulators classifying certain digital tokens as securities and therefore coming under the SEC’s supervision. Wall Street’s top watchdog says that ‎any entity that wants to become an ATS needs to register with the SEC as a broker-dealer and become a member of a self-regulating organization, such as the ‎FINRA.‎