SECURITY TOKEN OFFERINGS AND THE JOBS ACT

The JOBS Act was signed into law by President Barack Obama on April 5, 2012. The JOBS Act provided the framework for overhauling certain elements of existing securities laws and providing new exemptions from registration for fundraisers. Highlights of the JOBS Act include the ability for companies to now “generally solicit” or publicly advertise their offerings through the amendment of Regulation D (Tile II); full blown equity crowdfunding to all citizens under Title III; and a new more workable version of Reg A (Title IV). 

All security token offerings, like all offerings of securities, must either be registered with the SEC or qualify for an existing exemption. The JOBS Act exemptions provide an excellent framework for security token issuers to avoid the costly and time consuming registration process. Regulation D, Rule 506(c), Regulation A+ and Regulation CF may each, or in combination, meet your STO financing needs and strategy.

Regulation D, Rule 506(c)

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Regulation A+

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Regulation Crowdfunding

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