SEC Proposal to Unleash Security Token Sales in the Future

TALLINN, Estonia - April 13, 2020 - PRLog -- Good news is on the way for the cryptocurrency industry as companies planning on raising sorely needed funds via security token offerings might very well get some form of relief from regulatory burdens in the U.S. soon.

The country's Securities and Exchange Commission has published an eagerly awaited proposal just last month to amend its capital formation rules specifically targeting early stage startups of all industries. Once this comes into play, the modified rules will raise the cap on proceeds to the roof, from $50 to $75 million for security offerings sold under Regulation A+. For offerings under Regulation CF, it has been raised to $5 million from the original $1 million crowdfunding cap.

The new rules will actually be of great help to the JOBS (Jumpstart Our Business Startups) Act of 2012 into practice, allowing more companies to raise funds from the public without all the hassle of registering as a public company first but more importantly, the proposed rule amendment may very well mark a long awaited shift on the SEC, and the public in general's perception of the cryptocurrency industry.

However, the fact of the matter is that any and all companies aren't really even able to raise funds regardless of this new regulation due to the impact of the coronavirus on the world's economy. This is nothing but a temporary setback though as it is clear as day that the SEC's proposed changes will undoubtedly lay the groundwork for easier fundraising after the world's inevitable recovery.

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