Amit Singh, a shareholder in Stradling’s Corporate and Securities practice group, was quoted in an article published by Law360, “ Crypto ‘IEOs’ Grow Globally Despite US Legal Obstacles.” Initial Exchange Offerings (IEOs) are the latest in the evolving field of crypto financing and are appealing to investors because the trading platforms that manage the token sales vet the startups that are seeking funding. Due to regulatory obstacles in the United States, participants in the crypto industry are conducting IEOs internationally where they are finding a more receptive audience. Reg A+ offerings are becoming the only way a company can sell a legal token offering to the public in the United States besides an IPO. Singh stated that these developments were encouraging but noted that Reg A+ is still not an easy path. “For now, however, the IEO path is much more straightforward and quicker, I think a Reg A+ security token offering will make more sense as a second step after raising funds through other sources, whether through a private offering or an IEO,” he said.
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