How Does Regulation a (Reg A) Facilitate Smaller Security Offerings?
Regulation A (often called “mini-IPO”) allows companies to raise up to $75 million in a 12-month period from both accredited and non-accredited investors. It requires a qualified offering statement with the SEC but is less burdensome than a full IPO registration.
This exemption makes smaller public offerings more accessible to issuers.
Glossar
Public Offerings
Issuance ⎊ Public offerings within cryptocurrency represent the initial distribution of tokens or coins to the public, often through mechanisms like Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), or Security Token Offerings (STOs).
Qualified Offering Statement
Disclosure ⎊ The Qualified Offering Statement serves as the mandatory public disclosure document for tokenized securities issued under Regulation A, providing investors with material information about the issuer, the token, and the associated risks.