This week, in a Washington Post op-ed, Robinhood CEO Vlad Tenev called for a new approach to capital markets in the United States. He suggested a number of policies – modernizing accredited investor standards is an old favorite among finance wonks – but one stood out. “[T]here needs to exist a security token registration regime, allowing companies to create token offerings that are open to U.S. investors.” Here, Tenev seizes upon the skeleton key to unlock cryptocurrency’s full potential.
Here’s how securities markets work in the United States. By default, companies aren’t really allowed to sell equity at all. The Securities Act of 1933 defines securities and prescribes conditions – and penalties – for selling them. If a company wants to raise money, it hires a lawyer like me and either registers or finds an exemption like Regulation D (Reg D).
Most choose an exemption and go private. And as Tenev points out, many of those choose to stay that way – OpenAI, SpaceX or Stripe. But exempt securit
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Author: Aaron Brogan
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