SEC Changes Crowdfunding Rules For Cryptocurrency Startups
In the US, the SEC has changed the crowdfunding rules for cryptocurrency startups.
The changes are related to an increase in the limit of funds raised through regulated crowdfunding activities, from $1.07 million to $5 million. The new rules will provide more opportunities for attracting investment in cryptocurrency startups.
Jay Clayton SEC Chairman said:
`` For most small and medium-sized companies, our tax-free emissions system is the only viable fundraising channel. ''
Regulated crowdfunding has enabled cryptocurrency startups to issue securities without requiring registration with the US Securities and Exchange Commission. But they limited the volume of investments for non-accredited investors in the amount equal to $1.07 million. In accordance with the terms of the SEC, any investor who showed interest in participating in such events gets such an opportunity.
New rules for crowdfunding have increased investment limits and removed the restrictions that applied to qualified investors. The changes also affected unqualified investors, the amount of the fee will be calculated based on their annual income, which increases the limit by 12 months. These SEC amendments make it easier for cryptocurrency startups to access financing within the legal framework and make them more attractive from potential investors.
Earlier, the US Department of Justice (DOJ) spoke out about digital assets, calling the cryptocurrency a real test for the law enforcement system. But with clear regulation and the right approach, digital currency can become a useful and integral part of society.