Chained Assets - Research
ChainedAssets.comDoDAO.io
  • Intro to RWA
    • About This Module
    • RWA Introduction
      • Tokenization Process
      • Why RWAs: Bridging the Financial Gap
      • Why RWAs: State of Crypto and Imp. of RWAs in Crypto
      • Role of Regulations in Real-World Assets (RWAs)
      • Unique advantages for RWA developers
    • Regulations and Startups
      • Balance Between Innovation and Oversight in Emerging Industries
      • Impact of Restrictive Regulations on Blockchain
      • Good vs Bad Players
      • Investor Protection
    • US - Market & Regulations
      • Regulations in US
      • Exemptions in US
      • Table of Regulations
      • Conclusion
      • Other Important Regulations
  • Important Questions for Builders
  • RWA - Focus Areas
    • About This Module
    • Alternative Investments
      • Growth of Alternative Investments Market
      • Types of Alternative Investments
      • Pros & Cons
      • Due Diligence Process
    • Alt Asset 1 - Private Debt/Credit
      • Returns on Private Credit
      • Market Share & Growth of Private Credit
      • Types of Private Credit
      • Private Credit History
      • Important Terms
      • Working of Private Credit
      • Private Credit and Life Sciences
      • Important Metrics and Information points
      • Distressed Debt
      • Challenges faced by Industry
      • Use Cases for New Technology
      • Solutions/Ideas
    • Alt Asset 2 - Private Real Estate
      • Growth of Private Real Estate
      • Real Estate Fund Structures
        • Real Estate Syndication
        • Private Real Estate Fund
          • Fund Types
          • Creating a Funding
          • Closed vs Open ended Fund
          • Sponsor Compensation
        • Private RIETs
          • Setup Prive REIT
          • Important Terms
      • Comparison of Types
      • Important Terms
      • Important Metrics for Private Real Estate Funds
    • Alt Asset 3 - Private Equity
      • Growth in Private Equity Market
      • Types of Private Equity
      • Secondary Markets
        • Statistics- Secondary Markets
        • Top Secondary Market Players
    • Global & Innovative Distribution of Assets
      • Distribution of Assets
      • Consumer Stocks
      • Shareholder Perks
  • Legal
    • Asset Securitization
      • Structure: Traditional Securitization
      • RWA Project Examples with Partners
      • What is a SPV?
      • Role of SPVs in Securitization
      • Benefits of Asset Securitization
      • Structures of Asset-Backed Securities
      • Parties Involved In Securitization Process
      • Structuring the Transaction
    • Cayman Island - Orphan SPVs
      • Core Elements of an Orphan SPV Framework
      • How are Orphan SPVs formed?
      • Management of the Orphan SPV
    • Trusts
      • Key Components of a Trust
      • Trustee
      • Benefits to Investors/Shareholders
      • Examples of Trusts used by Web3 Funds
      • Unit Investment Trusts (UITs)
      • Delaware Statutory Trusts (DSTs)
      • FAQs
    • Global Regulatory Landscape
      • Switzerland
      • Luxembourg
      • Hong Kong
      • United Kingdom
      • Liechtenstein
      • Bermuda
      • British Virgin Islands
      • Cayman Islands
      • Jersey
      • MiCAR
  • MORE
    • Rubrics
      • Rubrics For Top Asset Types
      • SPVs Evaluation Rubric
      • Asset Originator Evaluation Rubric
      • Trusts Evaluation Rubric
      • FAQs
    • References
      • Regulations
      • Introduction
      • Alternative Investment
      • Trusts
      • Custodian
      • Securitization
      • REITs
      • Private Equity
      • Private Real Estate
      • Private Debt
      • Crypto Projects
      • Detailed Reports
      • DeFi Integrations
      • Global Distribution
      • Global Regulations
      • Private Credit - Borrowers
      • People
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On this page
  • Understanding Conflicts Between Reg S and Reg D 506(c)
  • Rule 144
  1. Intro to RWA
  2. US - Market & Regulations

Table of Regulations

PreviousExemptions in USNextConclusion

Last updated 8 months ago

Understanding Conflicts Between Reg S and Reg D 506(c)

When using Reg S and Reg D 506(c) together, conflicts can arise due to their differing rules.

Geographical Separation:

  • Reg D 506(c) is for U.S. accredited investors only.

  • Reg S is for both accredited and unaccredited foreign investors only.

  • Conflict: Marketing and offering strategies must be strictly separated to avoid violating Reg S rules. If the same materials or efforts target both U.S. and foreign investors, it could lead to compliance issues.

Secondary Market Restrictions:

  • Reg S securities have restrictions on resale, particularly when sold to non-U.S. persons. They cannot be quickly resold into the U.S. market.

  • Conflict: If Reg S securities end up in the U.S. too soon, it may be seen as a way to bypass Reg D restrictions, violating U.S. securities laws.

Rule 144

Rule 144 sets the rules for reselling restricted, unregistered, and control securities, which are often bought through private sales or OTC markets. To sell these securities without registering them with the SEC, sellers must meet specific conditions. If you're not connected to the company and have held the securities for over a year, you can sell them freely. If held for over six months, you can sell them as long as the company has up-to-date public information.

For insiders, there are stricter rules, including limits on how much you can sell, ensuring current company info is available, following normal trading practices, and filing a notice for larger sales. Essentially, Rule 144 provides an exemption from registration if these conditions are met.