October 19, 2019 Law firm behind Blockstack and Props’ Regulation A token offerings offers commentary on the process.

Regulation A is a securities registration exemption that allows firms to raise up to $50m per year, includes non-accredited investors, does not create restrictions on resale, and preempts state registration and qualification of the offering. Issuing firms are required to file regular financial statements with the SEC, and cannot concurrently distribute and receive tokens. Following approval from the SEC, Blockstack and Props completed successful offerings earlier this year. Reg A offerings may be particularly appropriate when the entity aims to distribute tokens to a very broad user base in an ongoing manner.