Blockstack Intends to Raise Another $50M

The tokensale will be conducted in accordance with the SEC's “A +” exemption and funds is planned to be used to accelerate the development computing stack
12 April 2019   1083

The New York blockchain-company, Blockstack, has filed a claim with the US Securities and Exchange Commission (SEC) to hold a tokensale in accordance with the “A +” exemption. The company plans to attract funding in the amount of $ 50 million, reports CoinDesk.

If approved, the sale of 295 million Blockstack Stack (STX) security tokens at a price of $ 0.30 per unit will be handled by a unit of the company Blockstack Token LLC.

The company wants to use the raised funds to accelerate the development of the decentralized computing stack and the application ecosystem.

We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations. This can potentially set a precedent for others in the industry, not just for public offerings, but also as a path to launch new public blockchains and establish a path to bootstrapping decentralized ecosystems.

Muneeb Ali

Co-founder and CEO, Blockstack

The A+ exemption was adopted by the SEC in 2012 and allows companies to attract up to $ 50 million of funding from American investors.

In December 2017, the Winklevoss brothers and other large investors invested $ 50 million in the Blockstack during the tokensale.

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   437

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.


The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.


The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 


The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”