After cracking down on ICOs, the SEC just okayed the first two RegA+ tokens that offer an alternative way for anyone to gain a financial stake in a company, even unaccredited investors. Blockstack and influencer live-streaming app YouNow’s spin-off Props received a formal green light for a consumer utility “Howey” token users can earn to get loyalty perks in multiple apps.
“Our offering of Props is the first consumer-facing offering of ‘Howey tokens’ to be qualified by the SEC. It makes it the first offering of consumer-oriented utility tokens that the SEC deems compliant, outside of Bitcoin and Ether,” Props CEO Adi Sideman tells me. While SEC officials have said Bitcoin and Ether aren’t securities thanks to their sufficient decentralization, they haven’t received formal approval. “We used Regulation A+ (Reg A) for this qualification, so that Props may be earned by, and provide functionality to, non-accredited investors, users, apps and validators, in compliance with U.S. regulations.”