ELI5: Reg A+ Title IV Tier II - A Bitshares' Super Hero?

image credit

What an odd name for a Super Hero. Stan Larimer, the Godfather of Bitshares, wrote a post entitled, Bitshares Get a Super Hero. In this post he mentioned a new legal funding law called Reg A+ Title IV Tier II.

What is it Reg A+?

Regulation A+ Title IV Tier II is intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations.

It was apart of The Jumpstart Our Business Startups Act, or JOBS Act, which was signed into law by President Barack Obama on April 5, 2012.

Cryptonomex plans to use the new and legal funding raising approach as an alternative to the current (and possibly illegal) cryptocurrency ICO craze. This is very important development that should not be overlooked.

Removing regulatory risk will allow startups to concentrate on launching their businesses and build great products and services. Also, this development should provide comfort for the institutional investment community who may have been apprehensive because of the legal uncertainty.

Not only does Cryptonomex plan to issue their own securities/tokens (stokens), they may offer a service to assist other cryptocurrency startups to issue their stokens as well. If so, this could be a big revenue stream. So, I look forward to hearing more about this in the future.

Regulation A

Regulation A of the JOBS Act is broken down into 2 Tiers:
Tier I - Companies seeking to raise up to $20 million in a 12 month period
Tier II - Companies seeking to raise up to $50 million in a 12 month period

Cryptononmex plans to issue stokens as a Tier II company.

Who can invest in Tier II Company Offerings?

Accredited Investor and non-Accredited Investors can both participate in Tier II offerings.

A. Accredited Investors

• A person who earned $200K annually or $300K for a couple in the last 2 year
  or
• A person with network of $1 million net worth (not including primary residence)

B. Non Accredited Investors

• Can invest up to 10% of the greater of annual income or net worth
  or
• Can invest 10% of the greater of annual revenue or net assets at fiscal year end

Most people fall into the non-Accredited Investor status. This regulation allows for almost anyone to invest and participate in these offerings.

Conclusion

I wish Stan and his team success in this endeavor. If they are successful, the entire Graphene family of tokens should benefit. Then I guess Reg A+ Title IV Tier II, would need a cape for achieving Super Hero status.

Thanks @pairmike

---

Support Me By Shopping at Amazon