The crypto market accomplished yet another milestone as multiple token offerings received qualification and approval from the U.S Securities and Exchange Commission (SEC). With this history was made since SEC gives first approval for crypto token.
These offerings were also the first crypto token offerings to receive Regulation A+ certification from the SEC in its history.
Since the Securities Act had been established back in 1933, it was made compulsory for a business be approved by an exemption in order to sell securities.
However, under President Barack Obama, the SEC had to amend the Securities act to cover for the matters outside of Reg A’s coverage. These set of laws is known as the Regulation A+ or Reg A+ for short.
This bill was accepted by the commission on March 25, 2015, while it became effective in June the same year. Reg A+ focuses on regulating small businesses even so the SEC has never accepted a crypto token offering until recently.
The two projects that were approved by the SEC are Stacks tokens by Blockstack PBC that was approved on July 10 and Younow’s Props tokens that were approved on the following day.
The news was first revealed by the CEO of Blockstack PBC Muneeb Ali. Ali revealed that this was the first time in the history of the United States that the SEC accepted a crypto token offering.
He then added that it was a huge leap for the blockchain ecosphere as a whole. This step would lead to further mainstream adoption of decentralised applications and further internet security.
Ali, while discussing the applications on the Blockstack decentralised computing network, stated that there were more than 160 of decentralised applications. Currently, the token offering is limited to fifty million dollars ($50M) in Stacks tokens per annum.
Meanwhile, the team from Younow stated that the approval was a “landmark moment” for the community.
Both of them have chosen the Tier 2 in Regulation A+ that allows offerings of fifty million dollars ($50M) for a year.