Business owners and investors have been anxiously waiting for the SEC to finalize their crowdfunding regulations since the JOBS Act was passed in 2012. It has been two years and we are still waiting. In 2013, the SEC issued their proposed rules and we have reviewed them extensively on this blog. They covered everything from who can be involved, how much money can be raised, the amount individual investors can contribute and more. In total, the document is over 500 pages long. Since issuing the proposal, the SEC has been accepting comments from anyone related to the industry in order to get feedback on which part of the proposed rules to keep and which ones need adjusting.
The Proposed Rules Have Been Scrapped
Last week the SEC’s crowdfunding advisory board, a panel of 21 people, voted unanimously that they proposed rules do not meet the spirit or guidelines outlined in the JOBS Act. In other words, they need to be scrapped and the SEC must start again. Considering it took a year and a half to issue the first set of proposed rules this is not good news for the crowdfunding community.
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