Regulation A+ (Reg A+)

March 21, 2019

Regulation A has been on the SEC books for more than 50 years. It was updated in 2015 (hence, Regulation A+) to pave the way for STOs and other future securities. The SEC requires that all companies seeking to sell securities be registered with the SEC and that these bodies comply with SEC requirements. Regulation A+ is an exemption to this rule that allows a company to issue and sell up to $50 million worth of securities in any given 12 month period.

Regulation A+ has been instrumental in allowing businesses to crowdfund outside of the formerly tight SEC oversight laws. Prior to Reg A, companies could only issue securities through traditional IPOs and stock offerings. Through Reg A, companies can freely trade STOs. Reg A also made it easier for these hopeful companies to attract accredited investors.

It’s important to note that traditional ICOs have not been issued under Reg A/A+ financing rules since ICOs do not qualify as securities. Coin offerings have traditionally been business managed more like negotiated business contracts, stipulating the agreement between “buyer” and “seller,” but not offering any oversight or security from the SEC.

CERES is using Reg A+ exemption to raise up to $50 million from both accredited and non-accredited investors via Regulation A+ fund sources.

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