Blockstack Token LLC, a “wholly-owned subsidiary” of Blockstack PBC, the developers of a “decentralized computing network,” have “filed an offering statement” with the US Securities and Exchange Commission (SEC).

According to a press release shared with CryptoGlobe, the statement requests that the federal regulator allow Blockstack to “conduct a $50 million token offering using the SEC Regulation A+ framework.”

“Upon Approval, First SEC-Qualified Token Offering Of Its Kind”

The release further noted that “upon approval, the offering is expected to be the first SEC-qualified token offering of its kind.” Blockstack’s management also mentioned that the “net proceeds of the offering will be used to accelerate the development of its decentralized computing stack and app ecosystem.”

As explained in Blockstack’s announcement, the decentralized computing network was built by computer scientists from Princeton University, and it has been designed to “enable engineers to build secure, privacy-focused applications.” These apps allow users to take “control of their data instead of storing it with large tech companies,” the release stated.

More Than 80 User-Controlled Data Applications Launched On Blockstack

Significantly, “more than 80 such applications already exist on Blockstack.” This includes Graphite, a “decentralized alternative to Google Docs,” Sigle, a “decentralized and open-source blogging application,” and BitPatron, a “subscription content service for creatives.”

Notably, Blockstack’s core technology has been built and deployed as open-source software with more than “7,000 enthusiasts and developers and community events” throughout the world.

Prior to Blockstack’s current attempt at seeking approval for funding from the SEC, the firm has managed to raise “over $50 million” from various venture capital-backed investment rounds and “under SEC Regulation D” from investors including Union Square Ventures, YCombinator, Lux Capital, and billionaire AngelList founder, Naval Ravikant.

Commenting on the initiative, Muneeb Ali, the co-founder and CEO at Blockstack PBC, remarked:

Blockstack has been in a confidential submission process with the SEC, making progress as we drive towards an SEC-qualified token offering. Recently, U.S. markets have been closed to crypto projects given regulatory uncertainty, and we believe in opening the U.S. market to innovation in this area.

Ali further noted: “We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations. Our framework is consistent with the latest SEC guidance released last week.”

Could “Potentially Set A Precedent” For Other Similar Projects

He also revealed:

Upon qualification, we believe that this offering may be the first time a blockchain project receives approval to access the public U.S. securities markets. This can potentially set a precedent for others in the industry, not just for public offerings, but also as a path to launch new public blockchains and establish a path to bootstrapping decentralized ecosystems.

Should the fundraising request be approved by the SEC, Blockstack’s Stacks (STX) token will be “offered through the website.” The company’s filings can be viewed at the SEC’s Edgar website.