Security Token Offering (STO) in USA
Companies can explore security token offerings - Digital Assets - to finance their expansion or to tokenize assets such as real estate, equity, energy, and many more. Running a successful STO / IEO process in the USA starts with being compliant in the eyes of both the U.S Commodity Futures Trading Commission (CFTC) and the U.S Securities and Exchange Commission (SEC).
In the states, the U.S. CFTC and SEC have taken the lead to regulate digital currencies at the federal level in regards to trading of and investing in digital currency derivatives.
Ultimately, the goal is to educate and protect investors. Firms and projects looking at security tokens to tokenise their equity or other assets for sale, will need an STO Advisor to develop strategies and help identify regulatory requirements.
The hype around Initial Coin Offerings (ICO) has died out towards the end of 2018. Regulations have caught up with the high risk of investors being scammed out of their hard-earned money. This led to the rise of Security Tokens where the traditional securities law apply for the digital assets.
On the page, we will provide you with an overview of the various regulatory terms to take note of for security tokens:
- 1. Reg S
- 2. Reg D
- 3. Reg A+
- 4. Reg CF
Visit STO Financing to see how we can help you achieve a successful and compliant STO project in USA.