SEC Proposal

The JOBS Act was signed into law on April 5, 2012. The U.S. Securities and Exchange Commission was been given approximately 270 days to set forth specific rules and guidelines that enact this legislation, while also ensuring the protection of investors.


The legislation mandates that funding portals must register with the SEC as well as an applicable self-regulatory organization to operate.


The JOBS Act places limits on the value of securities issuer may offer and individuals can invest through crowdfunding intermediaries. An issuer may sell up to $1,000,000 of its securities per 12 months, and, depending upon their net worth and income, investors will be permitted to invest up to $100,000 in crowdfunding issues per 12 months.[69] An independent financial statement review by a CPA firm is required for raises $100,000–500,000 and an independent financial statement audit by a CPA firm is required for raises over $500,000.[70]

State Legislation

Some see the federal crowdfunding legislation as unworkable. Several U.S. states have recently enacted or are considering their own crowdfunding exemption laws, to facilitate intrastate investment offerings that are already exempt from federal regulation. Kansas and Georgia have enacted exemptions. Wahington and North Carolina are considering enacting exemptions for crowdfunding. 

Equity based crowdfunding may be conducted by a licensed broker-dealer or through a Funding Portal registered with the SEC 

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