New SEC Agreement Pushes Bitcoin Price Higher to $1,100
BTC price rose higher after positive news regarding the SEC and its new regulations that are expected to boost small Bitcoin businesses.
Building on ‘Productive Relationship’
A memorandum of understanding (MOU) between the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA), signed Friday, will see the two bodies share information related to ensure new crowdfunding regulations are effective for small businesses.
The new rules will make it easier for entry-level businesses to raise funds via exceptions to restrictions governing intrastate crowdfunding.
“The agreement not only builds on an already productive relationship between the SEC and state regulators, it also offers additional insights and protections as we help companies grow and create jobs while providing new opportunities to investors,” SEC Acting Chairman Michael S. Piwowar commented in an accompanying press release.
Bitcoin Reacts with Relief
The move is generally seen as a beneficial step for cryptocurrency and Blockchain startups, with hurdles being removed for the US ecosystem to become more innovative and competitive.
Enthusiasm was reflected in continued Bitcoin support, the digital currency’s price crossing the $1,100 barrier once again.
“This agreement will strengthen collaboration among state and federal securities regulators to help expand small-business investment opportunities while also protecting investors,” continued Mike Rothman, Minnesota Commissioner of Commerce and President of NASAA.
Ongoing dialogue is essential to carry out our responsibilities going forward. With this MOU in place, we have an opportunity to share information that will bolster our efforts to support small business capital formation and prevent fraud.
All Eyes on March
The press release meanwhile outlines the new options available for the fintech startups themselves.
“Companies now can also raise up to $5 million per year through other amended rules, which could facilitate the development of regional offering exemptions at the state level to permit companies to raise from investors in a specific region,” it confirms, the limit having previously been $1 million.
In addition, companies:
will have more flexibility to engage in intrastate offers through websites and social media without having to register their offering with the federal government.
The move comes at a crucial time for the SEC in particular as it prepares to deliver its final verdict on allowing the Winklevoss Bitcoin ETF. The hotly-awaited decision is expected March 11th, with many predicting highly favorable consequences for Bitcoin’s propagation and value in the event of a positive outcome.
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