Final Crowdfunding Rules – Will December Be A Time To “Deck The Halls” or Will We All Be Singing “Silent Night”?

Composite image of santa claus checking his listLike many others, I have been hoping that Santa would bring us final Title III (general crowdfunding) and Title IV (Regulation A+) rules, or at least Title IV rules, by the end of 2014. Not a lofty goal when you consider the Jumpstart Our Business Startups Act (JOBS Act) was enacted in 2012. Just when I start to believe in holiday miracles again however, the S.E.C. comes along and basically says that Santa might not be coming this year.

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Recommendation To the S.E.C. – Investor Licensing

Red button with the word "Info"As I have addressed in several of my prior posts, there is an ongoing debate as to whether the S.E.C. should modify the current “accredited investor” standards and, if so, how should they be changed. Regardless of how you may weigh in on the issue, it is hard to deny the fact that there is just not enough useable data regarding private placements (or the types of persons/entities that invest in them) to make an educated assessment as to the potential effects of any changes to these standards. I believe that, unless changes are made to the current certification process, credible data will never be available.

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“Millionaires Can Fend For Themselves” says Commissioner Gallagher in his opening remarks.

superhero dollarLast week I had the opportunity to attend the 2014 Government-Business Forum on Small Business Capital Formation in Washington D.C. where Commissioner Daniel M. Gallagher gave his opening remarks after the first panel. In what I can only refer to as a “mic drop” moment, he brought the audience to instant applause when we proclaimed, in no uncertain terms, that the S.E.C. should not be wasting its time protecting high net worth individual or, as he put it, “Millionaires can fend for themselves.”

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Oregon Releases Proposed Intrastate Crowdfunding Exemption Rules; BUT Will They Be Useful?

Oregon CFWhile just recently uploaded, sometime in October David Tatman, the administrator of the Division of Finance and Corporate Securities, filed a “Statement Of Need And Fiscal Impact” with the Oregon Secretary of State proposing, what he refers to as, “Community Public Offerings” (CPOs) … which, between you and I, are intrastate crowdfunding offerings. While I applaud Administrator Tatman’s efforts in pushing intrastate crowdfunding forward, and his stated purpose for the proposed legislation, in my humble opinion this legislation misses its intended mark.

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Eureeca Cease and Desist Order – Why the SEC’s Approach Is Good News For The Industry

EureccaLast week Eureeca Capital SPC officially became one the first crowdfunding sites to be cited by the Securities and Exchange Commission (“SEC”) for, among other things, failing to take proper measures to verify that purchasers were “accredited” as required by Regulation D Rule 506(c). In response to the SEC’s proceedings against the Dubai based crowdfunding platform, Eureeca submitted an offer of settlement which was accepted by the SEC on November 10, 2014 in the form of a cease and desist order and a $25,000 fine. While we are certain to see more SEC actions as crowdfunding continues to grow in popularity, I see this order as a good sign for the crowdfunding industry in general.

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