New SEC rules push Bitcoin past $1,100, making it easier for small Bitcoin businesses to raise funds

Recently, the U.S. Securities and Exchange Commission (SEC) announced new regulatory rules that are expected to promote the development of small Bitcoin businesses. After this positive news was announced, the US dollar price of Bitcoin rose and has now exceeded $1,100.

Building a “productive partnership”

The U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association have signed a memorandum of understanding (MOU) that will allow the two agencies to share relevant information to ensure that new crowdfunding regulations are effective for small businesses.

The new rules will make it easier for entry-level businesses to raise money outside of U.S. state crowdfunding restrictions.

SEC Acting Chairman Michael S. Piwowar said in a press release:

“This agreement not only builds on the productive relationship that already exists between the SEC and state regulators, but also provides additional insights and protections while opening up new opportunities for investors.

Bitcoin market reaction is encouraging

The SEC’s move is generally seen as beneficial to cryptocurrency and blockchain companies as the agreement clears the way for the U.S. ecosystem to become more innovative and competitive.

This can be seen in the support for Bitcoin, with the price of the digital currency now breaking through $1,100 again.

Mike Rothman, NASAA President and Minnesota Commerce Commissioner, said:

“This agreement will strengthen cooperation between America’s state and federal securities regulators, helping to expand investment opportunities for small businesses while protecting investors.”

“Ongoing dialogue is critical to meeting our responsibilities. With this MOU in place, we have the opportunity to share a wealth of information that will strengthen our work to support small business capital formation and prevent fraud.

Other rule changes allow companies to now raise $5 million per year (up from a previous limit of $1 million), which could boost the development of the intrastate offering exemption, which allows companies to raise money from investors in certain regions.

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“Companies will have greater flexibility to participate in intrastate offerings through websites and social networks, and will no longer have to register their offerings with the federal government.”

The move comes at a critical time when the SEC is preparing to make a final ruling on the Winklevoss Bitcoin ETF. This long-awaited Bitcoin ETF will get a final answer on March 11, and many people predict that if the Bitcoin ETF is approved, it will have extremely favorable results for the spread and value of Bitcoin.