Blockstack Paves Way for Blockchain Startup Fundraising with SEC Nod

Blockchain startups have received a dose of clarity on the fundraising landscape, and you can feel the excitement in the air. The U.S. securities regulator has given Blockstack the green light to sell Stacks (STX) tokens in the maiden SEC-approved crypto deal of its kind. The utility token sale will happen via an offshoot of an IPO known as Regulation A+, which was created several years ago. Blockstack is targeting a $28 million token sale that will be open to the public.

It has the potential to be a game-changer for other crypto startups that are looking to sell tokens but not equity in their companies while remaining SEC-compliant. Regulation A+ is meant for smaller companies that don’t want to go through the intrusive process of an IPO, though gaining SEC approval was no walk in the park for Blockstack, which according to the Journal poured $2 million and months on end into the process.

Blockstack a Trailblazer

Blockstack, which describes itself as a “decentralized computing network,” is blazing a new trail for blockchain startups. Rather than just ban U.S. investors from its token sale, which it could have done, it spent the time with regulators to get approved. The SEC has largely behaved like The Grinch in the crypto world, and this gives investors and entrepreneurs alike a ray of hope for the future of the space. You have to think companies like Kik are kicking themselves right about now given the court fight they have ahead with the SEC for an unregulated token sale.

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