TL;DR: Blockstack PBC co-founder and CEO Muneeb Ali took a social media victory lab, announcing premier United States financial regulator, the Securities and Exchange Commission (SEC), approved the company’s application to hold a first-ever regulated token offering mere hours from this article’s publication.
Blockstack Earns First SEC Approved Token Offering
In a move widely viewed as both a validation and repudiation of initial coin offerings (ICOs), the SEC cleared Blockstack for an initial public offering (IPO) alternative under the rubric of of Regulation A+ for the company’s STX token. They’ll begin selling digital tokens this week in a bid to raise nearly $30 million.
It’s validation, of course, for a nascent industry with an eye toward recognition from legacy finance. Tokens are somewhat familiar territory for regulators, as they come hitched to a formally incorporated business and have ever-critical doors to kick-in and executives to roust should the offering turn sour or run afoul of applicable law.
The repudiation of ICOs is a little harder to see, but the SEC and its satellites around the US have effectively made ICOs among their main targets, firing off cease and desist letters and assisting in prosecutions for unlicensed, unregistered schemes. The agency pushed the industry, what’s left of it in the US, into its waiting arms, and Blockstack is the first, very public evidence of those efforts.
“This is the first time in U.S. history that a crypto token offering has received SEC qualification,” the company blogged. “We believe this is a huge step forward for decentralized applications, internet security, and privacy.” Under its previous incarnation, back in 2017, only accredited Blockstack investors were allowed participation, which carried with it giant barriers to entry and legal hurdles. “Now, thanks to this SEC-qualified offering, the general public can participate and fully interact with our network,” they stressed. “Anyone can now join the movement to transition the world to a user-controlled internet.”
. @Blockstack will hold the first regulated token sale later this morning through a Reg A+ offering
— Squawk Box (@SquawkCNBC) July 11, 2019
Opening the US retail market could be a boon for the industry, but it’s early days yet. Estimates are Blockstack had to wrangle up millions to pay for legal teams and compliance measures to get SEC approval, which means A+ arrangements are hardly competitive with offshore ICOs in the short term. Working to get that coveted US imprimatur, however, the company acknowledged “was the harder but better path to take.”
STX token sales will begin just hours from publication. Thursday, July 11th, 2019 at 11am EDT, the cash offering “will be open to any purchaser who would like to take part in the Blockstack next-generation computing network, subject to a small number of geographical restrictions. This means everyone from general enthusiasts, to longstanding Blockstack supporters, to accredited or non-accredited investors alike — in the U.S. and globally, can participate in the sale. As part of the offering, an additional $12 million in tokens will be allocated to Blockstack’s App Mining Program, which rewards the developers who create the top-ranked applications within the Blockstack ecosystem,” the company explained.
The offering will be held here.
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.
CONTINUE THE SPICE and check out our piping hot VIDEOS. Our podcast, The CoinSpice Podcast, has amazing guests. Follow CoinSpice on Twitter. Join our Telegram feed to make sure you never miss a post. Drop some BCH at the merch shop — we’ve got some spicy shirts for men and women. Don’t forget to help spread the word about CoinSpice on social media.