Everyone is very excited about the new crowdfunding-for-securities law. Crowdfunding is a great idea–in concept. And now we have a new law which is about to make crowdfunding for securities a reality, at least in some sense. The trouble? The law is onerous. It is going to be difficult and expensive to comply with. The burdens of the new law are plenty, but the benefits of the new law are capped. In short, the crowdfunding law as currently written is, in my opinion, needs to be fixed. I don’t mean to be just negative here. Crowdfunding enthusiasts should take their enthusiasm back to Congress to try to get the law fixed. Here are a few of my complaints about the law as it currently stands and recommendations for improvements.
All posts tagged Reg D
The SEC, Accredited Crowdfunding, And The Art Of Hair Splitting
Summary of Remarks of Joe Wallin to Section 201 of the JOBS Act Given at a Presentation to the Angel Capital Association, Northwest Regional Meeting, held in Seattle, Washington, on May 2, 2012.
Last week I spoke on a panel with Dan Rosen,Tom Alberg, William Carleton and Gary Kocher at the Northwest Regional Meeting of the Angel Capital Association.
I put together these materials as a guide to my remarks. After I prepared them, the Federal Regulation of Securities Committee of the Business Law Section of the American Bar Association (ABA) submitted its comments to the Securities and Exchange Commission (SEC) on Section 201 of the JOBS Act. I have added excerpts from the ABA Committee Letter where helpful to understanding the material.
As we wrote last week, the most exciting provisions of the JOBS Act, at least for private companies–the repeal of the ban on general solicitation in all accredited offerings and crowdfunding–are not yet effective and won’t be effective until the SEC issues new regulations. On the same day we published that post, the Securities and Exchange Commission (SEC) issued a notice reminding everyone that crowdfunding is still unlawful until the SEC adopts new rules implementing the JOBS Act’s crowdfunding exemption.
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