Clearly, its taken longer than that. Related: The JOBS Act: What You Need To Know As it turns out, writing rules that fundamentally overhaul an eight-decade-old securities law is complicated. The first effort federal regulators made at writing rules for equity crowdfunding were released in October of 2013 . But those rules were met with a fiery debate and some pretty intense resistance from stakeholders in the community . The SEC received literally hundreds of public comments in response to their first attempt to write the rules for equity crowdfunding , but it appears the agency has listened. Now, 3 years later, regulators are finally coming to the table with a second set of rules to implement the equity crowdfunding legislation . Will the rules pass the SEC vote? This new set of rules are expected to pass the SEC. Friday is a vote but there is no chance it will get turned down. It should be more of a formality, says Ryan Feit, the CEO and co-founder of SeedInvest , an online-investing platform for startups.
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A Background On Uncomplicated Systems In Crowdfunding
This represents a significant democratization of capital sources and is opening the door for investors living in the flyover states that have much less access to deal flow than the coastal states do. With Silicon Valley at the helm, California continues to lead the way in both the number of companies and the capital raised. Rounding out the crowdfunding top five states in equity crowdfunding are: New York, Florida, Texas, and Illinois. As reported by Crowdfunder, there are an estimated 9 million accredited investors in the US, while the vast majority have not yet signed onto an equity funding platform, they are distributed throughout the country.
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