Props for the “Reg A” Reality: A lesson in digital asset securities offerings

It pains me to say it, but Open Props’ recent announcement of the coming termination of its ongoing Regulation A (“Reg A”) digital asset securities (Props) offering and the cessation of support for its Props Loyalty Program leads me to one stark conclusion.

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CRYPTOCURRENCY, REGULATION Julian Russo CRYPTOCURRENCY, REGULATION Julian Russo

Ketsal Partner Peter Luce is Quoted in Bloomberg Law Article on Crypto Custody

“State-chartered banks, particularly “challenger banks” that have positioned themselves as service providers to the fintech industry, are likely to ask the Federal Deposit Insurance Corp. to take similar action as the OCC, said Peter Luce, partner at Ketsal PLLC, based in Washington. Without the FDIC’s blessing, smaller banks are reluctant to deal with the uncertainty that comes with supporting crypto custody and wallet services, Luce said.

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#1 Did You Know: Eligible Issuers

#1 Did You Know: Eligible Issuers

Regulation A (“Reg A”)[1] is a great way for smaller companies to raise funds through the sale of securities — up to $50 million a year — including companies wishing to issue securities tokens. It offers a number of benefits to such companies, including the ability to (1) sell unrestricted (i.e., freely transferable) securities (2) on a continuous basis over time (3) to a variety of investors, regardless of their income or wealth (4) without having to register the securities at a state-by-state level.

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