SEC Finalizes Rule Change That Could (One Day) Juice Token Sales

The U.S. Securities and Exchange Commission (SEC) has increased limits dictating how much capital companies can raise before registering in a move that could be a boon for security token offerings (STOs).

• Companies can now raise $5 million in total under Regulation Crowdfunding provisions (previously: $1.07 million), $75 million under Regulation A+ (previously: $50 million) and $10 million under Rule 504 of Regulation D (previously: $5 million), the SEC said.
• As CoinDesk reported in March, the heightened caps could make it easier for startups to conduct security token offerings without running afoul of the regulator.
• SEC also relaxed certain restrictions governing document filing, solicitation practices and accredited investor investment limits in the Monday announcement.
• Chairman Jay Clayton said the changes will ease the burden of capital formation for small and medium-sized businesses.