SEC Proposal Sparks Hope for US Token-Based Fundraising
The Securities and Exchange Commission's (SEC) proposed Regulation Crypto Assets has been met with enthusiasm from Grayscale, an investment firm. According to Zach Pandl, Head of Research at Grayscale, the regulation could bring a new wave of token-based fundraising in the United States. This is because token-based fundraising has been taking place overseas but not offered to U.S. investors due to regulatory ambiguity.
The SEC's proposal aims to reverse this trend and reduce the incentive for issuers to move offshore. By creating a clear framework for certain investment contracts involving crypto assets, Regulation Crypto Assets seeks to provide crypto asset entrepreneurs with clear pathways to raise capital under federal securities laws.
Grayscale believes that if the new rules can stimulate more issuance activity, it will bring more U.S. issuers and investors on-chain and drive value back to underlying blockchains and their native tokens, including Ethereum, Solana, and BNB Chain.