The Role of Blockchain Technology in Crowdfunded Private Equity Secondary Trading

Abstract

The Securities Act of 1933 requires that issuers register with the SEC "any sale of securities" but includes several statutory exemptions from this requirement.   Crowfunding, or the solicitation of financing from many investors using the internet is one of these exemptions.  Study of the filings have indicated increasing sales of securitized tokens using crowdfunding.  This paper examines these offerings and discusses the role that securitized tokens could play in future secondary trading of crowdfunded securities.