New York-based Blockstack has filed a submission with the Securities and Exchange Commission (SEC) to launch a regulated token offering to US and worldwide investors.
According to a press release shared with Coin Rivet, decentralised computing network Blockstack is looking to raise $50 million using the SEC Regulation A+ framework.
Once approved, the offering is expected to become the first SEC-qualified token offering of its kind.
The SEC has been clamping down on a number of unregistered ICOs over the past year, with Airfox and Paragon being ordered to refund investors and pay penalties, while Gladius handed themselves in to the regulator.
This landmark move by Blockstack is an encouraging sign for start-ups in the US who may have been perturbed by the SEC’s regulatory power over the past year.
“Blockstack has been in a confidential submission process with the SEC, making progress as we drive towards an SEC-qualified token offering. Recently, US markets have been closed to crypto projects given regulatory uncertainty, and we believe in opening the US market to innovation in this area,” said Muneeb Ali, co-founder and CEO of Blockstack.
“We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations. Our framework is consistent with the latest SEC guidance released last week.”
“Upon qualification, we believe that this offering may be the first time a blockchain project receives approval to access the public US securities markets,” Ali continued.
“This can potentially set a precedent for others in the industry, not just for public offerings, but also a path to launch new public blockchains and bootstrapping decentralised ecosystems.”