THe SEC Has Approved Tokenized Security Offerings Under Regulation A+

On July 10th, 2019, the United States Securities and Exchange Commission (SEC) approved a Regulation A+ tokenized security offering for a company called Blockstack. The following day, the SEC approved a second Regulation A+ tokenized security offering for a company known as Props (YouNow Inc.). These approvals are monumental and set significant precedent because they are the first token offerings that have been approved by the SEC under Regulation A+.


Regulation A+ was first introduced in 2012 through the “Jumpstart Our Business Startups (JOBS) Act”. These initial public offerings (IPO’s) are geared towards companies in need of early-stage funding. Regulation A+ is particularly marketable to companies that are interested in offering tokens, rather than shares, because under the Reg A+ exemption, issuers may offer digital assets to both accredited and non-accredited investors.


Companies seeking to raise capital via Reg A+ will first need to file with the SEC and obtain its approval before launching an IPO or initial coin offering (ICO). Under the highest tier of Reg A+, companies can raise up to $50 million from investors in a 12 month period. The fees associated with a Reg A+ offering are also much lower than a traditional IPO and the ongoing disclosure requirements are less extensive.


It is important to note that there are still many pending applications for tokenized security offerings under Regulation A+ and the process can be very long and costly – notwithstanding the fact that it is still less expensive and arduous than an IPO.


To learn more and discuss any questions you might have, contact David V. Croft at 216-831-0042, or by email at





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This Client Alert is a summary prepared for general informational purposes and is not intended or meant to constitute a legal opinion or legal advice from Meyers Roman Friedberg & Lewis or any of its attorneys.


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