The Securities and Exchange Commission has granted Exodus Inc., a crypto wallet provider, the go-ahead to start selling shares for its services. On Thursday, the Delaware-based Exodus Inc. which created a unique software system has secured the SEC approval for Class A common stock classified under Regulation A. On Friday, the shares became available for sale in the United States and can be accessed via the wallet. Since its inception, Exodus has been only desktop-compatible on which crypto traders can trade a variety of digital assets. Users can also swap between wallets from one asset to another. Presently, users can buy Exodus shares via the app.
Regulation A exempts a firm from registering before selling shares
In February, the SEC received Exodus filings for a Regulation A offering. This is contained in the document submitted by the firm. Regulation A exempts approved firms from from registering before selling their shares, according to the details obtained from Investor.gov. The Thursday announcement stated that a unit of Class A common stock sells for $27.42.
Any interested person can buy as little as a single share or as much as the 2,733,229 shares available for buyers to pick from. Any intending investor is required to register with Securitize or directly in the wallet, to be eligible to participate. Only U.S. residents are eligible to buy Exodus shares. However, three states, including Texas, Florida and Arizona, are not allowed to take part.
The statement adds that Exodus is set to partner with alternative trading systems (ATS) to ensure that Exodus shares are readily available to buyers. Exodus hopes to ensure that the Class A common stock is always accessible to traders on many ATS, such as the tZero ATS, in less than a year after the launch of this offering. Recently, many crypto firms have been shifting to the mainstream market. For example, Coinbase is launching its direct listing on April 14th.
SEC’s Explanation of Regulation A
According to the federal securities laws, any entity willing to sell or offer a security for sale must register with the SEC or qualify for an exemption. Regulation A is the term used to describe an exemption from registration to enable firms to sell or offer securities which are unregistered with the SEC. Firms who have been granted the privileges of Regulation
A exemption can sell or offer securities under Tier 1 or Tier 2. An issuer will receive payment after selling the securities since the SEC has qualified the offering. But it must be noted that qualifying is not the same as approving the offering. Also, the SEC is not charged with the responsibility of determining the accuracy of any materials submitted to it.
Exodus, established in 2015, is a multiple-asset software wallet free from the techie requirements but prioritizes design to ensure that crypto and digital assets are easily accessible to everybody. Exodus, which can now be accessed via mobile and desktop, enables clients to store, manage, and compete for crypto transactions in Bitcoin, Ether, Ripple, etc.