SEC© Issues Proposal on Crowdfunding

The Securities and Exchange Commission unanimously voted to propose rules to permit companies to offer and sell securities via crowdfunding.

These rules would fall under Title III of the JOBS Act, which creates an exemption under securities law so that this type of funding can be used to offer and sell securities. The intent of the JOBS Act was to make it easier for startups and small business to raise capital and widen the spectrum of potential investors, while also providing additional investment opportunities.

The SEC© has opened a discussion for public comments on the proposed rules for a 90 day period following their publication in the Federal Register.

For more background on Crowdfunding and the implications it has on future investment opportunities and investors please click here.

What are your feelings on crowdfunding and the future investment opportunities it creates? Do you trust the SEC© to make the appropriate regulatory decisions to foster a beneficial environment for new forms of investing?