Steve Bradford has become my go to guy for information on the emergent crowdfunding phenomenon. He's posted on it again, with links to his excellent article on the topic and earlier blog posts. In his latest post, he notes that:
Given the SEC’s history when it comes to small business exemptions, I have not been optimistic that such an exemption will come to pass. But President Obama just changed the odds. The White House has released a statement supporting a number of changes to the regulation of small business, including a crowdfunding exemption. According to the release “"The administration . . . supports establishing a “crowdfunding” exemption from SEC registration requirements for firms raising less than $1 million (with individual investments limited to $10,000 or 10% of investors’ annual income) and raising the cap on “mini-offerings” (Regulation A) from $5 million to $50 million.” That's all the release says; no further details are provided.
Both of these suggestions make sense, but the devil will be in the details.
He goes on to discuss those devilish details.
