Grayscale Sees SEC Proposal Unleashing New Wave of US Token Offerings

Token-based fundraising, in turn, could bring more U.S. issuers on-chain and drive value to underlying networks such as Ethereum, Solana and BNB Chain, according to the article.

Fundraising through the offering of newly issued tokens has been taking place overseas and not offered to U.S. investors due to regulatory ambiguity, the article said.

Regulation Crypto Assets aims to reverse that trend and reduce the incentive for issuers to move offshore. The proposal would create a path for issuers to come to market under existing U.S. securities laws, per the article.

“The bottom line for investors is that token-based fundraising is a potentially important use case of public blockchain technology — like stablecoins, tokenized securities and decentralized exchanges,” Pandl said in the article. “If the new rules can stimulate more issuance activity, that will bring more U.S. issuers and investors onchain and likely drive value back to the underlying blockchains and their native tokens, including [Ethereum, Solana and BNB Chain].”

When the SEC announced Regulation Crypto Assets on Tuesday, it said that the proposed rule would create a clear framework for certain investment contracts involving crypto assets.