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SEC Finally Moves On Equity Crowdfunding, Phase 1

As the CEO of Crowdfunder and a participant in JOBS Act legislation, I’ve had unique access to people and parties involved the regulatory process, and I wanted to share some insights with you. Those in favor of equity crowdfunding had reason to celebrate recently. On July 10th, just three months after taking office, Mary Jo White, Chairman of the SEC, called a portion of the JOBS Act to vote which passed 4-1. The SEC vote finalized rulings around Title II of the JOBS Act, which lifts the longtime ban on public solicitation and creates a new type of offering called 506(c), that essentially allows companies, for the first time in over 80 years, to freely advertise that they are fundraising to the general public. Here’s the simple SEC Fact Sheet about the vote and new ruling. When White took office she stated that she saw crowdfunding laws as a priority. With this first movement by the SEC, we see that Chairman White has the desire and will to implement the JOBS Act and crowdfunding-related laws that were passed with overwhelming bipartisan support, but the SEC nearly killed JOBS Act Rulings for equity crowdfunding under the two previous Chairs. What This […]

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