Blockstack becomes the first SEC approved blockchain firm under A+ regulation framework

Blockstack, a blockchain startup has finally got the nod from The Securities and Exchange Commission (SEC) to raise funds under its A+ regulation framework. The approval from the SEC would see Blockcstream raising $28 million for its token offering within the United States.

The A+ regulatory framework was devised back in 2012, which allows new and upcoming firms to raise capitals of up to $50 million from retail investors. However, one must not confuse the A+ regulatory framework as some form of IPO, as it requires lenient disclosure obligations.

Although several new startups and firms have made use of the A+ regulations in the past, Blockstack became the first blockchain centered firm to acquire the nod of SEC. Blockstack disclosed that they have been working closely with regulators to establish a transparent legal framework before its security token offerings(STO) gets launched.

Blockstack co-founder Muneeb Ali mentioned that the process was tiring and cost them a fortune in getting the necessary approvals to work under the regulatory guidelines. However, he called the approval a “groundbreaking day‘ for the decentralized space.

Blockstack has raised $52 million in funding rounds earlier

Blockstack has decided to take an unconventional path and raise funds for its ambitious project with the approval of regulatory bodies. Back in 2017, it raised about $47 million in the token sale, under the Regulation D framework of SEC. Regulation D permits only accredited investors to invest money in a particular company. The blockchain-firm also raised around $5 million through venture capitalists.

Blockstack will be issuing Stacks (STX) tokens to its investors which then they can use to register several digital assets. These STX tokens would act as domain names with multiple functionalities, investors can use it as a smart contract and process transaction fees using it.