PANews reported on February 19 that former Coinbase CTO Balaji said that as traditional IPO and mergers and acquisitions (M&A) paths are blocked, security token issuance (STO) on the blockchain may become a new window for technology companies to raise funds. He pointed out that SEC regulations make it difficult for small companies to IPO, and the recent tough stance of the US Federal Trade Commission (FTC) on large-scale mergers and acquisitions has further restricted the exit path for startups. This policy environment may weaken the capital flow and competitiveness of the entrepreneurial ecosystem.
However, he believes that policy changes in the crypto space have opened the door for STOs, and the new government's support for cryptocurrencies has made blockchain-based financing models more attractive. STOs can not only reduce the cost of listing for small businesses, but also provide startups with a source of capital independent of large technology companies. Balaji emphasized that this model is in line with the government's goal of small businesses remaining independent, while also providing global investors with the opportunity to participate without having direct control of the company.
