Blockstack, a crypto startup working towards the creation of a decentralized computing network, announced today it had filed an offering statement with the U.S Securities and Exchanges Commission (SEC).
As per the announcement, the newly submitted offering application wants to take advantage of the SEC Regulation A+ framework which allows firms to raise funds through an IPO alternative model. The framework allows the sale of fundraising securities to U.S investors for either a $20 million or $50 million cap within 12 months.
Upon approval, Blockstack will use the regulatory compliant model to sell Blockstack’s Stacks (STX) token through a website of its subsidiary, Blockstack Token LLC.
As Blockstack further notes, acquiring regulatory approval for the intended sell would mean that the startup is the first to conduct an “SEC-qualified token offering,” a landmark that should set the tone for other public blockchain projects.
Additionally, Blockstack claimed that its submission to the U.S SEC is in line with the guidelines released by the agency’s Division last week, meaning that there is a high chance that it will see a green light.
The proceeds from the intended token offering would go into the improvement of the “Blockstack decentralized computing network and app ecosystem,” the announcement confirms. Meanwhile, the company already raised $50 million in 2017 from venture capital investors.
Blockstack’s latest filing continues the long run of efforts by U.S based cryptocurrency startups to find the right method of issuing its token to investors without conflicting with local regulations for securities.
Although the SEC’s Fintech Division released a guideline for such issuance last week, there are also other efforts to provide regulatory certainty for startups. One such attempt is the Token Taxonomy Act 2019, a bill proposed by U.S lawmakers to liberate some ICO tokens from the state’s securities law.
That bill was reintroduced to the U.S Congress earlier this week after its debut in December.
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