On July 10, 2019, the Securities and Exchange Commission (“SEC”) approved blockchain start-up, Blockstack’s $28 million public token offering under Regulation A+. Blockstack, a decentralized computing network, will commence its token offering on July 11, 2019. As part of the offering, an estimated $12 million in tokens will be allocated to Blockstack’s App Mining Program, which rewards developers who create the top-ranked applications within the Blockstack ecosystem.
According to a report by The Wall Street Journal, Blockstack founders Muneeb Ali and Ryan Shea reportedly spent 10 months and an estimated $2 million working to gain approval by the SEC. Ali explained that Blockstack developed a protocol from scratch to comply with requirements under Regulation A+, which is an initial public offering alternative that was created under the JumpStart Our Business Startups Act.
In short, Regulation A+ is a fast track for smaller companies to publically raise funds with less strenuous accounts and disclosure requirements than the traditional IPO offerings. However, increased concerns relating to fraud and lackluster post-IPO performance has deterred stock exchanges from listing Regulation + IPOs. Blockstack’s SEC approval may signal a new wave of regulated token offerings.
 The Wall Street Journal article titled “SEC Clears Blockstack to Hold First Regulated Token Offering” can be found here.
The post Blockstack Receives SEC Approval to Sell Tokens Under Regulation A+ appeared first on Capital Markets.