SEC Advances crowdfunding rules

The SEC Finally Convenes on Crowdfunding Rules – Open Meeting

Jobs Act on Fox Business

The SEC Finally Convenes on Crowdfunding Rules – Let the Sun Shine!

It had been more than 18 months since President Obama signed into law the multi-faceted potpourri entitled the Jumpstart Our Business Startups Act (the JOBS Act). One of the more controversial provisions of the JOBS ACT, Title III, entitled “Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012” (“CROWDFUND”), outlined the parameters of a new and revolutionary vehicle intended to facilitate capital formation for startups and small businesses – Equity Crowdfunding – - harnessing the power of the Internet to attract capital from large numbers of investors seeking to invest small amounts of money in private companies in exchange for a piece of the action. Though the concept of raising large amounts of money from small, unaccredited investors was not a novel one, allowing companies to solicit investments from large numbers of unaccredited investors without the protections of an SEC registration and review process is something that has been largely prohibited under federal law since 1933.

Adding to the controversy surrounding the JOBS Act were Title III provisions prohibiting states from regulating crowdfunded offerings – states could not engage in so- called “merit review” of crowdfunding investments. Generally, state merit review would be an absolute bar for startups and risky early stage companies seeking to raise money from unaccredited investors.

Though the JOBS Act provided a nine page blueprint for crowdfunding, it left the heavy lifting to SEC rulemaking – with a statutory directive that no later than 270 days following the enactment of the JOBS Act the SEC issue rules implementing the historic crowdfunding legislation.

Elisse B. Walter Chairman of SECThe 270 day rulemaking period came and went – sans rules. Despite crowds of lobbyists and would-be service providers in and around the Washington Beltway; various directives and ultimatums from angry members of Congress; and letters from an impatient public; it seemed that for 18 months the only thing that Title III generated was controversy and speculation – when would the proposed rules be issued, what they would contain, and would crowdfunding prove to be a viable concept as an investment vehicle?

And Then There Was a Ray of Sunshine

As is often the case in Washingtonian business as usual, breaking “news” is often heralded by selective leaks to the press by Washington insiders. By this yardstick, it appears that it was business as usual last week in Washington, despite the best efforts of Congress to shut the government down.

Seems that Dave Michaels, a reporter with a reputation for covering breaking news at the SEC, was the first to scoop this story – reporting on October 17 and 18 on Bloomberg.com that the long awaited crowdfunding rules were targeted for a Commission vote on October 23.

Captiva Sunset Small President Obama Speaks after signing the Jobs Act April 2012 Mary Jo White Samuel S. Guzik
CreateSpace Independent Publishing Platform Crowdfunding on Steroids: General Solicitation under Rule 506(c) (Private Placement Law Series) (Volume 4)
Book (CreateSpace Independent Publishing Platform)

Bitcoin oversupply of Thanksgiving turkeys

by what-to-do-Bitcoining

"The website Assassination Market, a crowdfunding service that lets anyone anonymously contribute Bitcoins towards a bounty on the head of any government official–a kind of Kickstarter for political assassinations. According to Assassination Market’s rules, if someone on its hit list is killed, any hitman who can prove he or she was responsible receives the collected funds.
"Sanjuro’s grisly ambitions go beyond raising the funds to bankroll a few political killings. He believes that if Assassination Market can persist and gain enough users, it will eventually enable the assassinations of enough politicians that no one would dare to hold office

CUSIP Global Services, WealthForge to Collaborate on Crowdfunding  — PR Newswire
NEW YORK, April 30, 2014 /PRNewswire/ -- CUSIP Global Services (CGS), a leading provider of unique security and entity identifiers and descriptive data that enable efficient global trading, and WealthForge, a licensed broker-dealer specializing in ..

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