SEC approves $28 million Blockstack token sale, first-ever “compliant ICO”

SEC approves $28 million Blockstack token sale, first-ever “compliant ICO”

Thursday, July 11, 2019, 4:51 AM

The Securities and Exchanges Commission (SEC) has approved a digital token offering under Reg A+. Blockstack’s $28 million investment round will effectively be the first crypto token sale with regulatory approval.

Blockstack will begin selling its tokens on Thursday. The founders, Muneeb Ali and Ryan Shea, told The Wall Street Journalthat it had cost them around $2 million to get the greenlight from the SEC for a Reg A+ offering. So far, the company has raised $5 million from venture capital, as well as around $47 million in a token sale in 2017.

The Reg A+ platform functions in a similar way to an ICO or an IEO, allowing companies to sell digital tokens to regular retail investors, and not just accredited investors with a very high level of capital available.

This could prove to be a big step forward for smaller crypto start-ups, offering them a new way to raise funds. Many prominent observers in the crypto community have claimed that this positive action from the SEC will bring more legitimacy to Bitcoin and the crypto market, making it more appealing for institutions. The proliferation of suspicious token sales over the last few years did a significant amount of damage to the reputation of the crypto space, and popular influencer @Bullyesq explained the importance of a “compliant ICO” with reference to Herman Melville’s classic novel Moby Dick.

Imo institutional investors will love this: legitimizes the Bitcoin space, gives regulatory certainty, opens new onramps.

— Tuur Demeester (@TuurDemeester) July 10, 2019

👏 Nice! A compliant ICO is the white whale of crypto. This is huge.

— ฿ully (@BullyEsq) July 10, 2019