Rule 701 is a safe harbor exemption created by the U.S. Securities and Exchange Commission to allow companies to issue equity securities to compensate employees, directors, general partners, officers, consultants and advisors, subject to specific definitions thereof and many accompanying rules and regulations. (for the full details work with your counsel and checkout https://www.sec.gov/smallbusiness/exemptofferings/rule701).

Fairmint’s software and templates include many tools to help organization’s issue securities pursuant to Rule 701, including securities and digital assets, but you must work with a qualified attorney to ensure all applicable requirements and rules are met.

Read more about Rule 701 on our blog: here