The initial coin offering platform is a sign that the age of industrial Era capital formation is being replaced by a new form of decentralized and democratized investment and customer-driven business models that will grow far beyond the borders of any one country, this notwithstanding the controversial aspect of initial coin offering.
In this case, it is quite natural for entrepreneurs and companies to move towards the areas that allow them to raise funds from investors and serve customers around the world in a rapid, safe and effective way and with less friction.
A lot of countries have positioned themselves to be at the head of this transition knowing that this movement is a shift to a forthcoming decentralized Era. They want to reap the economic, financial and geopolitical benefits that accompany the position of go-to jurisdiction for global capital formation.
It is rather unfortunate that the United States is not part of these countries. Instead, it has a short-sighted and enforcement-heavy approach that is not in favor of an expansion beyond Industrial Era thinking.
The US has publicly offered dull sayings about adopting the innovation and facilitating domestic entrepreneurship in the crypto space. The proof is in the pudding, and the pudding here is that serious cryptocurrency projects have two unappealing choices: issue tokens through outmoded and ill-fitting means that restrict a token’s customer base and resale ability (like registering as a security or claiming a Regulation D exemption) or leave the US altogether.
CoinDesk highlighted that the natural and predictable consequence is that innovators are leaving the US to search for more fertile grounds.
To that effect, areas like Gilbratar, Switzerland, Liechtenstein, Malta, and Bermuda have been rolling out the welcome mat for token sales and structuring local regulations for a balance to exist between the goals of industry development and consumer protection.