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Reg A+ liberalizes regulations for ICOs but still regulated

Regulation A+ is a method of fundraising that gives exemption from regulation for public offerings. Regulation A has two offering tiers: Tier 1, for offerings of up to $20 million in a 12-month period; and Tier 2, for offerings of up to $50 million in a 12-month period.

Despite the fact that RegA+ liberalizes and moderates the regulatory frameworks on securities offerings and enables ICO’s with ease of fundraising through this option in the U.S. But this should not be deemed as an alternative for the unregulated ICO market, we run you through why:

  • Although Reg A+ reduces the regulatory complexities, the method is still expected to abide by Anti Money Laundering laws, that ICOs should satisfy this control checks
  • Reg A+ requires “Offering Circulars” which are quite a lot exhaustive than the conventional approach
  • SEC approved exchanges must be used exclusively. This is a bit of a hindrance

SEC regulation still has a long way to go before it is viable for ICOs and these changes are helping to pave the way. There is no suspicion that at least some ICOs would clinch these regulations going forward.

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