New regulations from the SEC have made it easier than ever to raise funds for cryptocurrency projects. The two regulations, Reg. Crowdfunding (C.F.) and Reg. A, allow companies to secure between $1 million and $50 million. These new avenues for fundraising are compliant, cost-effective, and synergistic with ICOs.
A controversy in the cryptocurrency space revolves around crypto securities classification. Many projects attempt to avoid regulation by claiming that their coin is a ‘utility token,’ rather than a ‘security token.’ Utility tokens are not regulated by the SEC and are more akin to ‘gift cards.’