2019: Blockstack of the first got from SEC approval on ICO
In July, 2019 Blockstack became the first company which received from the U.S. Securities and Exchange Commission (SEC) the formal permission on primary placement of tokens.
ICO was approved within the provision Regulation A+ accepted in the law on start of startups (Jumpstart Our Business Startups Act) and allowing the companies to attract up to $50 million with alternative IPO methods.
According to The Wall Street Journal (WSJ), the startup which constructed a blockchain network for the decentralized applications is going to sell tokens for $28 million. They can be used for registration of digital assets, such as domain names, for creation and implementation of smart contracts, for payments on transactions in Blockstack network, etc.
| ||Tokenseyl will be open for any buyer who would like to become the participant of the computer network of the next generation of Blockstack, taking into account a small number of geographical restrictions — it is reported on the website of the company.|| |
Though SEC permitted ICO earlier, but only according to the rules Regulation D which limit transactions only to accredited investors. In a case with Blockstack anyone will be able to invest in the company. The permission issued to SEC represents the certain simplified IPO form where to the company moves forward much less requirements for fund raising.
On a lawyer's opinion and the yuriskonsultant of Compound company of Jake Chervinsky, the solution SEC can be considered as a huge step for all cryptoindustry.
Approval from SEC ran Blockstack into money: the founder of the company Muneeb Ali told WSJ that about $2 million were spent for necessary measures.
Earlier Blockstack carried out by ICO according to the provision Regulation D and attracted $47 million Besides, the company received $5 million venture investments.