Excellent article here provided by Andy Crebar of HoneyBricks.
Tokens can come in all shapes and sizes, but when we’re talking about tokens backed by real estate - they’re called security tokens.
Just like regular US securities, security tokens need to comply with security laws. This means abiding and operating in the rules set out by the Securities and Exchange Commission (SEC).
While not always loved by market participants, these legal and regulatory frameworks exist for a reason. Here is how the tokenized real estate industry navigates this today.
In this article:
- An introduction to securities
- The two ways to issue: registration or exemptions
- Regulation D offering - Accredited Investors
- Regulation S Offering - Non-US Persons
- Regulation CF offering - Crowdfunding portals
- Regulation A+ Offering - The ‘mini-IPO’
- The role of tokenization
- What's on the SEC horizon?
Read the full article HERE.