The US Securities and Exchange Commission (SEC) has increased the limits for raising money by companies without registering a prospectus, which could make it easier to place token-shares (STO).
According to the SEC, companies can now raise a total of $ 5 million under the Crowdfunding Regulation (formerly $ 1.07 million), $ 75 million under Regulation A + (formerly: – $ 50 million) and $ 10 million under Regulation 504. D (formerly $ 5 million).
The increased limits can make it easier for startups to conduct share token placements without the risk of conflict with the regulator. SEC Chairman Jay Clayton said the changes will increase opportunities to raise capital for small and medium-sized businesses. Small companies will now be able to raise more money, which will simplify the work in the early stages.
The SEC has repeatedly settled claims with cryptocurrency companies regarding fundraising through the sale of tokens. As a reminder, software developer Kik and the SEC recently resolved a dispute over the illegal ICO of the KIN token. Kik will pay a $ 5 million fine.
Earlier, the regulator brought charges against entrepreneur John McAfee for promoting fraudulent ICOs. The SEC also ordered Salt Lending to offer investors a refund for their initial token offering (ICO) in 2017.