Muneeb Ali, CEO of Blockstack shared news on 11 April about Blockstack Token LLC filing an offering statement to conduct a 50 million U.S. dollar token handout.
Muneeb commenced by informing that the offering was filed with the Securities and Exchange Commission (SEC) using the SEC Regulation A+ framework. Muneeb emphasized that if this takeaway is approved, it would be the first SEC-qualified token based crowdfunding of its type. He added that the net proceeds of this venture would be leveraged for the development of Blockstack decentralized computing network.
Muneeb cited on the engagement with the SEC as –
“We’ve been in a confidential submission process with the SEC, making progress as we drive towards an SEC-qualified token offering. Recently, U.S. markets have been closed to crypto projects given regulatory uncertainty, and we believe in opening the U.S. markets to innovation in this area. We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations.”
Muneeb touched upon a historical note to effectively convey the essence of the current undertaking. Blockstacks’s decentralized computing network was created by computer scientists from Princeton University to help build privacy-focused applications. He highlighted that more than 80 applications already exist on Blockstack.
Muneeb further added that Blockstack’s core technology was developed as open-source software. This was facilitated through the contribution of over 7,000 enthusiasts and developers around the world. He conveyed that Blockstack had previously raised over 50 million U.S. dollars through venture investments from reputed firms.
Muneeb sustained by adding that their framework was compliant to the latest SEC guidelines. Muneeb acknowledged that they were aware of the substantial time and effort it would take to work with the regulators. However, upon qualification, Blockstack’s project could be the first blockchain application that can access the public US securities market.
Late last year, open-source cryptocurrency data and research company, Messari announced that it would be developing a transparent database for token-issuing projects to share information publicly. Twelve partners had joined in the project, which included big industry players like Civic, Decent, Aion, Blockstack and many more.
Muneeb expressed that Blockstack’s latest token offering could set an example for others in the industry. Such a precedent would not be restricted to public offerings but also scale to new public blockchains and decentralized applications. Muneeb summarized by stating that the Blockstack’s Stacks (STX) token would be available through the declared website.