Blockchain start-ups leap with excitement as U.S. Securities and Exchange Commission (SEC) gives its maiden approval to a public benefit organization named Blockstack Public Benefit Corp for its public token offering under Regulation A+.
Following the approval, the firm will sell Stacks tokens (STX) and aim to raise twenty-eight million dollars ($28 million) in offering open to the public.
Blockstack sets the stage
The news has been viewed as a pivotal moment for crypto start-ups who are hoping to establish their base in the US crypto markets. They can now plan to sell tokens while remaining compliant with SEC regulations.
However, acquiring SEC approval was far from being a cakewalk. According to the Journal, Blockstack had to put in months of negotiations along with a capital of two million dollars ($2 million) to make the system adaptable to SEC rules.
Blockstack, the company known for its decentralized open network, chose to take the hard path of getting the SEC nod. Debarring US investors from token offering could have been an easy way out, however, the firm opted to work closely with SEC regulators and ensured that they meet the requisite criteria for getting the green signal.
Having acted as trail setter, Blockstack offers a silver lining to the budding crypto entrepreneurs who dream to make it big in the crypto space. Moreover, it also discourages companies to engage in court fights with SEC for selling illegitimate tokens.
Meanwhile, Blockstack offers a decentralized platform for design and development of Decentralized Applications (DApps). With the purpose of boosting its brand identity, it also developed a Mining Program that encourages participants to contribute towards the development of crypto space in general.
“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,” announces Blockstack.
For the interested investors, Blockstack will initiate its token sale on July 11.
It now remains to be seen whether Blockstack will truly succeed in transforming the face of the internet and bring about a new era of decentralized websites and applications.