What Is a Reg D Offering in the Context of Security Tokens?
Regulation D (Reg D) is a US Securities and Exchange Commission (SEC) rule that provides exemptions from the registration requirements for certain private placements of securities. Security tokens can be offered under Reg D, allowing issuers to raise capital from accredited investors without a full public registration.
This is a common path for security token offerings (STOs) to comply with US law while maintaining a private status.
Glossar
Security Tokens
Tokenization ⎊ Security tokens represent fractional ownership of tangible assets, often linked to sustainable projects or resources, enabling granular investment and enhanced liquidity compared to traditional asset classes.
Private Placements
Structure ⎊ Private placements, within cryptocurrency, options, and derivatives, represent the sale of securities to a select group of investors, bypassing public markets and associated registration requirements.
Security Token Offerings
Issuance ⎊ Security Token Offerings represent a novel mechanism for capital formation, bridging traditional securities regulations with the efficiencies of distributed ledger technology.
Accredited Investors
Criteria ⎊ Accredited Investors are defined by specific financial thresholds or professional experience metrics established by regulatory bodies to delineate sophisticated market participants.
Securities and Exchange Commission
Oversight ⎊ This body asserts jurisdiction over assets deemed securities, which directly impacts the structure and legality of tokenized offerings and associated derivatives products in the US market.