Regulation A+ has emerged as a new path to compliance in crypto securities offerings, but Union Square Ventures' Nick Grossman said there needs to be more avenues for compliance. For now, Grossman said the question at hand is whether all tokens are securities, and for him it's a resounding no.
"I personally think that there absolutely has to be a path for certain kinds of tokens that work the right ways to trade freely not as securities," he said on this week's episode of The Scoop.
The USV partner told The Block that Reg A+ successes Blockstack and Props went through extensive design revision with the Securities Exchange Commission to plot the path to compliance that included trade-offs. Additionally, the legal process is expensive, according to Grossman. But the high cost isn't limited to Reg A+.
"No matter how you do it, it's expensive," said Grossman.
He said he has hopes it could become less expensive over time if a template emerges, but it still likely wouldn't be a one-size-fits-all situation.
"I am encouraged that it seems to have at least gotten through for these two and they’re both really interesting projects that are doing different things and I’m hopeful that it will work for them," he said. "But I also don’t think it’s the only way to do it and I don’t think it should be the only way to do it."