Why Is Rule 506(C) Preferred over Rule 506(B) for Many Crypto Offerings?

Rule 506(c) is often preferred over Rule 506(b) for many crypto offerings because it allows for general solicitation and advertising of the offering (e.g. via a public website or social media). Given the borderless and public nature of the crypto space, this ability to advertise widely is a significant advantage for capital raising.

The trade-off is that under 506(c), the issuer must take "reasonable steps to verify" that all purchasers are accredited investors, a requirement not explicitly present in the more restrictive 506(b) which prohibits general solicitation.