According to a statement published March 29th, 2020, Blockstack PBC filed its annual report with the SEC. This report is viewed as the most comprehensive report submitted by Blockstack since the company’s first SEC-licensed Security Token Offering in 2019. Can Blockstack’s move be interpreted as an improvement in transparency within the digital asset industry?
Blockstack SEC-Qualified Annual Report Explained
Blockstack PBC, a New York-based public benefit corporation regarded as the core company in the Blockstack ecosystem, filed an annual report with SEC, aiming to better the industry transparency. Business Wire has described this report as the most comprehensive filing that the company has submitted to date.
Muneeb Ali, Blockstack CEO, released the news and expressed his excitement on Twitter saying,
“Today we filed our annual report with SEC for Blockstack PBC. Excited for the progress and work towards increased decentralization!”
The annual report includes audited financials for 2019 and allows everyone to easily search through all the crucial updates on Blockstack’s progress since last summer. Such a way of reporting business history comes as a novelty among the cryptocurrency startups. With their business updates open both to the public and country’s head financial regulator, Blockstack is on the verge of setting a new transparency guideline in the crypto industry.
However, this is not the first successful collaboration between the SEC and Blockstack. On July 10th, 2019 Blockstack became the first company to launch a token offering that was approved by the SEC.
Namely, after receiving a green light from SEC, Blockstack conducted a $28 million cash offer. This offering is listed as the first crypto token offering in U.S. history that was granted an SEC qualification.
Blockstack’s Annual Report and Transparency
Regular and transparent updates of a company’s business records provide potential investors with essential information regarding the company’s success in a certain timeframe. This way, potential investors can have a good basis for deciding whether a particular company is worth investing in.
So, having in mind that the cryptocurrency industry is still in its formative period, a transparent business is a far-reaching factor in the industry’s successful development. With their business history updated and available for everyone, cryptocurrency companies can attract investors and engage in fair business partnerships.
However, a feasible method of updating business records and displaying them to investors and customers is needed. Blockstack’s qualification with the Securities and Exchange Commission serves as an excellent example of how other companies can make their business history transparent.
Blockstack’s annual report on the SEC website is easily accessible with all the information in the report confirmed as credible by the commission. This easy-to-access annual report allows people to see the information on the legal status of Stacks (STX) tokens both in the U.S and non-U.S. regions, Blockstack’s strategic partnerships, the exchanges that have listed STX, and Blockstack’s audited financials.
So, having in mind the value of transparency in business, it seems that Blockstack’s collaboration with SEC will prove as exemplary for other companies. The digital asset industry witnessed notable progress in 2019. While 2020 has been quiet thus far due to the coronavirus, Blockstack has now made a big statement.
Do you think that Blockstack’s SEC-qualified annual report will improve transparency in the digital asset industry? Please let us know your thoughts in the comments below.
Image courtesy of Blockstack.