The Securities and Exchange Commission is working to issue a crowdfunding proposal in the next few months, SEC Chairman Elisse Walter told a Senate panel Thursday.
Crowdfunding, a key provision in the Jumpstart Our Business Startups, or JOBS, Act, is a way for issuers to raise up to $1 million annually by soliciting investors through the issuers' websites or through an intermediary's portal.
Proponents of crowdfunding have asked for exemptions from SEC registration rules to help early-stage companies raise capital, but some observers are concerned that any exemptions would present an opportunity for fraudsters to target vulnerable investors.
"[W]e are working in the next few months putting together a crowdfunding proposal. I will say that although we very much regret not meeting the statutory deadline, we've learned a lot from meeting with people from this community and from abroad who have engaged in crowdfunding in the securities sphere, and I think that will help to illuminate
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.
