Is regulation hurting blockchain innovation in the U.S?
I talk to many Silicon Valley entrepreneurs…Below are my findings:
-ICO are moving out of the U.S. Forward-thinking countries like Malta, Switzerland, German, France, Australia, Japan are creating laws enabling utility tokens to be floated in a legally compliant manner.
-Here in the USA, there is no utility provision and all ICOs are considered securities. This is hurting our companies and innovation is leaving USA. While we have had successful Reg D 506c ICO offerings, I am yet to see one successful Reg A+ offering for a blockchain based token sale ( successful Reg A+ offering have mostly been consumer products)
- We all hope STOs in USA take off and there is promise that they will… we’ll have to wait and see. I personally think for STOs to succeed our regulations will have to get a little relaxed. EG- The costing and time required to do a Reg A+ Tier 2 creates a huge friction point for most founders (lawyers charging $100K- $500K to do a reg a+). If this friction can be reduced, there is more light at the end of the tunnel.
At the end of the day, the win happens where the investor wins (No ICO scams)
At present I see a divided world drawing lines between Utility and Security ICOs.
Do ICO or STOs stand the test of time? who wins?