The Jumpstart Our Business Startups Act (JOBS Act) was an Act signed by former President Obama in 2012 which freed small businesses of some restraints for raising funds. Capital formation for these companies was eased by increasing protection of the investors. Therefore, in 2015, the United States Stock Exchange Commission adopted rules to allow companies to raise money in the form of crowdfunding, with an exemption to the federal law which allowed investors to use crowdfunding to get trade securities.
However, the law had failed to materialize the number of jobs required. This fallacy forced vice-chairman of NASDAQ David Weild IV to call for a JOBS 2.0 which used blockchain’s distributed ledger technology. This amended law enables companies to raise large amounts of funds by selling security tokens associated with DLT in its initial public offering (IPO). The minimum amount of money required to participate in the IPO is a mere USD 1,000, far less when compared to the previous investor requisite of USD 1 million.
Wield, who is a Board of Director of INX Ltd., one of the companies to raise funds using security tokens, said:
“Weild, who sits on the board of INX, says he now has 14 blockchain and cryptocurrency clients waiting in the rafters to bring the best of blockchain to the best of traditional exchanges, and perhaps, finally get the JOBS Act right.”
Bitcoin’s integration and involvement in the jobs sector is clearly seen by the fact that many companies now offer jobs that pay in Bitcoin. In a way, Bitcoin is streamlining more job opportunities in the digital economy.
Image Courtesy: Pixabay