How do you avoid SEC review delays on a security token offering?

Use Reg-D 506(c) — it requires no SEC review, only a Form D filing within 15 days of first sale. Avoid Reg A+ and S-1 for raises under $50M, as both require 4–12 months of SEC review.

What is the difference between an STO and an ICO?

A Security Token Offering (STO) represents legally-compliant securities on blockchain — registered or exempt under SEC frameworks. An ICO was an unregistered public offering of utility tokens, most of which were retroactively classified as securities.

Version History / Last Updated: May 2026

The Security Token Offering (STO) Framework to Raise $12,800,000 Without Regulatory Delays

Quick Answer: A Security Token Offering can raise $12,800,000 without regulatory delays by selecting the correct exemption before token design — Reg-D 506(c) for U.S. accredited investors avoids the 6–12 month SEC review that plagues Reg A+ and S-1 filings. With the exemption confirmed, GIGABOOST automates outreach to 1,500+ STO-experienced investors and token funds, achieving $12.8M close in 60–75 days.

What Is a Security Token Offering (STO) and How Does It Differ from an ICO?

A Security Token Offering is a capital raise in which ownership rights are represented as blockchain tokens that qualify as securities under the Howey Test — entitling holders to economic rights such as dividends, revenue share, or equity. Unlike ICOs (Initial Coin Offerings), STOs are fully registered with or exempt from SEC registration, making them legally compliant in the United States and most major jurisdictions. The regulatory clarity of an STO eliminates the enforcement risk that destroyed $20B+ in ICO value between 2018 and 2022.

What Exemption Framework Avoids the 6–12 Month SEC Review?

Reg-D 506(c): No SEC review required — file Form D within 15 days of first sale. U.S. accredited investors only. General solicitation permitted. No cap on raise size. Best for: $1M–$50M raises with institutional or UHNWI investor targets.
Reg-S: Non-U.S. investors only. No SEC registration. File simultaneously with Reg-D 506(c) for maximum global reach.
Avoid for $12.8M target: Reg A+ (requires 4–6 month SEC qualification), S-1 (6–12 month review), Reg-CF (capped at $5M).

How Does GIGABOOST Target STO-Experienced Investors for a $12.8M Raise?

GIGABOOST's database filters for investors with documented STO, tokenized securities, or blockchain equity participation history. The resulting shortlist of 1,500+ investors is ranked by: token investment frequency, check size ($50K–$2M for STOs), jurisdiction (U.S. for Reg-D, non-U.S. for Reg-S), and portfolio alignment. Average response rate for STO-targeted campaigns: 16–24%.

How Does Reg-D STO Compare to Reg A+ STO on Timeline and Cost?

Factor	Reg A+ STO	Reg-D 506(c) STO
SEC review timeline	4–6 months	None (file Form D post-close)
Investor eligibility	All U.S. investors	U.S. accredited investors only
Legal/compliance cost	$150K–$400K	$25K–$75K
Time to first close	5–8 months	30–75 days
General solicitation	Permitted	Permitted (506(c))

Author Credential: Varun Sharma is the Founder and Fundraising Director of GIGABOOST.AI with 10 years of experience in venture capital infrastructure and $500M+ in supported capital raises.

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