Tech firm Blockstack PBC’s digital currency “Stacks” could become tradable by U.S. investors once the company launches the Stacks Blockchain 2.0 on Jan. 14, 2021, according to Reuters. Once launched, the company’s network will no longer be controlled by any single entity, and it’s Stacks token will not be considered a security under the Securities and Exchange Commission regulations.
- Under SEC regulations, some cryptocurrencies are classified as securities as part of efforts to enforce rules against entities failing to register digital currencies or assets sold to investors.
- Following the launch of Stacks 2.0, Blockstack’s digital token will no longer be treated as a security, and the company would be required to file the required reports with the SEC.
- Blockstack has been building a decentralized network and app ecosystem for Web 3.0, and raised $23 million last year by issuing Stacks tokens in a public offering under the SEC’s Regulation A+ exemption.
Blockstack’s digital tokens are currently trading on exchanges outside the U.S. and have a market capitalization of $220 million.