The US Securities and Exchange Commission (SEC) has proposed increasing the limits on attracting investments without registration, including those related to token-share placements (STOs).
SEC proposes to increase the limit on the amount attracted from investors as part of the offer of tokens under Rule A + from $ 50 million to $ 75 million, and crowdfunding income - $ 1 million to $ 5 million in 12 months. These rules, based on the 2012 Act called the Jumpstart Our Business Startup (or JOBS) Act, will allow young companies to raise funds without having to register as an open joint stock company.
According to Blockstack CEO Muneeb Ali, the SEC has finally realized that as the crypto industry develops, the world is changing rapidly, so regulators need to adapt their requirements to help create a healthy market and enable young companies with a new product enter this market. However, given the negative impact of coronavirus on the crypto industry and the global economy as a whole, it will still be difficult for crypto start-ups to raise funds even despite such "indulgences" of the SEC. Moreover, the changes proposed by the Commission can significantly simplify and increase the efficiency of fundraising after the economy recovers.
Former head of LabCFTC financial technology research division Daniel Gorfine believes that these changes will increase the number of token offerings (STOs) that meet regulatory requirements. He added that the SEC had previously filed claims against many firms trying to raise funds through ICOs because of a violation of securities laws. Now, the SEC provides startups with a "life raft", and this is a step that promotes industry development and investor protection.
After the proposed changes will be published in the archives of the US Federal Register, companies can express their opinion on this matter by sending an e-mail to the agency or filling out a form on the site within 60 days. Thus, the SEC enables firms to clarify important issues related to the offer of tokens-shares, as well as to clarify in which case the tokens are securities.
Recall that last month, SEC Commissioner Hester Peirce proposed introducing a three-year regulatory "vacation" for cryptocurrency startups.