Crypto▲ Bullish
Grayscale Says SEC Token Rule Could Draw Issuers Back Onshore
Grayscale's research head says the SEC's proposed token fundraising rule could pull U.S. issuers back onshore, reversing a years-long offshore trend driven by regulatory ambiguity.
Continue with
The SEC's proposed Regulation Crypto Assets, announced Tuesday, could open the door for token-based fundraising inside the United States, Grayscale Head of Research Zach Pandl said in a note Wednesday.
Fundraising through new token issuance has mostly shifted overseas in recent years, with U.S. issuers steering clear because of legal ambiguity. The proposal aims to reverse that by creating a clear path under existing securities laws, Pandl wrote.
"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," he said. "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."