Tech company Blockstack PBC’s digital currency “Stacks” can become tradable by US investors together with the launching of its brand new blockchain early next year, Muneeb Ali, the provider’s co-founder and chief executive told Reuters in an interview late last week.
Beneath US Securities and Exchange Commission regulations, a few cryptocurrencies or digital tokens are classed as securities as part of attempts to enforce rules against entities failing to register digital monies or assets offered to investors.
With the launching of Blockstack’s Stacks Blockchain 2.0 on Jan. 14, 2021, the organization’s network will probably be no more be controlled by any single entity and its Stacks token can no more be regarded as a security under SEC regulations,” Ali explained.
This implies Blockstack will not be asked to submit periodic financial reports as a business and its Stacks token could be exchanged by US investors on US digital asset trades.
The SEC didn’t immediately respond to a Reuters petition for comment.
The Stacks token, which now trades on exchanges outside the United States, has a market capitalization of $220 million.
Blockstack, which is constructing a decentralized community and app ecosystem for Web 3.0, increased $23 million last year by devoting Stacks tokens in a public offering under the SEC’s Regulation A+ exemption. Those tokens though couldn’t be traded by US investors on US exchanges.
“Over the past year, we have been moving on an explicit path to decentralization, with several independent entities now in our ecosystem. . .that there would not be dependence on our company for the success of the network,” explained Ali.
“It is a little bit like bitcoin where there are so many different companies, different miners, and different players.”
Following the launch of Stacks 2.0, which will mean that the token is no longer being treated as a safety, Ali said Blockstack intends to file an exit report on the SEC that states it would no longer be submitting the required reports with the U.S. regulator.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Gertrude Chavez-Dreyfuss. Editing by Jane Merriman.
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