California, having the largest population in the United States, is trying again to pass a bill legalizing equity California crowdfunding. Last year the legislature gave their best efforts but the legislation stalled in the Appropriations committee. The primary source of contention was with AARP, an organization that fears California crowdfunding may be a way to defraud senior citizens.
California has an economy larger than most countries so facilitating capital for SME’s could a powerful economic boost. The challenges are in the details of any legislation that actually will become law. Some states have legalized equity crowdfunding and closely aligned their rules with the proposed federal exemption for retail crowdfunding or Title III of the JOBS Act. This portion of the JOBS Act is largely viewed as dead on arrival; too restrictive, too costly and too limiting in amounts that can be raised. But California’s effort is indicative of the frustration that workable final rules have not been released.
Review the current proposed California Crowdfunding Exemption:
Here are just a few features for instrastate equity crowdfunding included in the CrowdForce platform software:
• State residency self-verification
• Driver’s license upload for verification
• Setting funding limits for non-accredited investors
• Allowing accredited investor participation
• Complete and simple document signing and management
• Integrated ACH payments
• Plug in your state escrow account
• Plugin in your broker services for accredited investments
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