News & Analysis as of September 19, 2024

Securities and Exchange Commission (SEC)

+ Follow

Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including, but not limited to, supporting charitable organizations, disaster relief, product development, artistic projects, and financing start-up companies. The passage of the JOBS Act of 2012 sought to broaden the use of crowdfunding in developing private capital for start-up companies by relaxing certain SEC investor registration requirements. less -

Rule 506 Offerings Continue to be Popular with Real Estate Companies

Whitman Legal Solutions, LLC on 2/21/2024

Like an accordionist, real estate sponsors often seek to be innovative. Cutting-edge opportunities like crowdfunding and online selling platforms call to them. However, based on statistics from the Securities and Exchange...more

Real Estate Continued to Favor Rule 506(b) Offerings During the Pandemic

Whitman Legal Solutions, LLC on 1/17/2022

Under the Securities Act of 1933 (1933 Act), all securities offerings must be registered with the SEC unless there is an exemption. Registering securities is a costly and time-consuming process requiring SEC review and...more

Pros and Cons of Equity Crowdfunding for Real Estate Investments

Whitman Legal Solutions, LLC on 9/1/2021

Popular crowdfunding platforms, like Kickstarter and IndieGoGo operate backer-based platforms similar to noisenights. In backer-based crowdfunding, backers who contribute a minimum amount usually receive the product or...more

The Law of Facebook Is Not the Law of Small Companies

Barnea Jaffa Lande & Co. on 7/9/2019

In June, two seemingly unrelated events took place: during the first week of June the SEC filed suit in federal court against the company Kik Interactive, which raised about 100 million dollars in the summer of 2017 through...more

SEC to ICO Players: Our Game, Our Rules

Schwabe, Williamson & Wyatt PC on 9/13/2017

On July 25, 2017, the U.S. Securities and Exchange Commission (the “SEC”) published an investigative report (the “Report”) cautioning market participants that the offer and sale of digital assets such as “coins” or “tokens,”...more

SEC Focuses on Initial Coin Offerings: Tokens May Be Securities Under Federal Securities Laws

Dechert LLP on 9/13/2017

The U.S. Securities and Exchange Commission (SEC) has recently taken several actions to make clear that it is focused on and actively monitoring the rapidly growing market for so-called “token sales” or “initial coin...more

House Passes Creating Financial Prosperity for Businesses and Investors Act

Stinson - Corporate & Securities Law Blog on 12/7/2016

On Monday, the House of Representatives passed the Creating Financial Prosperity for Businesses and Investors Act (H.R. 6427) (the “Act”) by a vote of 398 to 2. The Act is actually a compilation of six measures that were...more

SEC Adopts Final Rules to Facilitate Intrastate and Regional Securities Offerings

Ballard Spahr LLP on 10/31/2016

The Securities and Exchange Commission (SEC) has adopted final rules modernizing and expanding the ways in which smaller companies can raise capital. Rule 147 of the Securities Act of 1933, as amended, provides a safe...more

NOTICE: SEC Adopts Rules to Facilitate Intrastate and Regional Securities Offerings

Lowndes on 10/31/2016

On October 26, 2016, the Securities and Exchange Commission (SEC) adopted final rules that modernize how companies can raise money to fund their businesses through intrastate and regional securities offerings....more

New SEC Rules for Intrastate and Regional Securities Offerings

Stinson - Corporate & Securities Law Blog on 10/27/2016

The SEC has adopted final rules to modernize intrastate securities offerings under Rule 147, adopted new Rule 147A to broaden the availability of the existing safe harbor for intrastate securities offerings and amended Rule...more

Bipartisan Members of Congress and NASAA Declare Support for SEC’s Proposed Modernization of Rules to Facilitate Intrastate...

Stinson - Corporate & Securities Law Blog on 10/19/2016

On October 7, 2016, a bipartisan contingent of members of the U.S. House of Representatives and the president of the North American Securities Administrator Association (NASAA) coordinated a duel message to the SEC regarding...more

Secondary Trading in Regulation A+ Securities; $4.4 Million Committed by Investors Under Regulation Crowdfunding

Stinson - Corporate & Securities Law Blog on 7/20/2016

In connection with the SEC meeting of the Advisory Committee on Small and Emerging Companies, the SEC posted a presentation which deals in part on secondary trading of Regulation A+ securities. Among other things, it includes...more

SEC Finally Adopts Federal Crowdfunding Rules: All That Glitters May Not Be Gold

Adler Pollock & Sheehan P.C. on 11/3/2015

On October 30, 2015, the Securities and Exchange Commission (“SEC”), by a 3-1 vote, adopted the long-anticipated final rules permitting federal crowdfunding (“Title III Crowdfunding”), providing a potentially attractive...more

SEC Adopts Rules to Permit Crowdfunding: Proposes Amendments to Existing Rules to Facilitate Intrastate and Regional Securities...

Orrick - Finance 20/20 on 11/3/2015

On October 30, the Securities and Exchange Commission adopted final rules under Title III of the JOBS Act (“Regulation Crowdfunding”) to permit a company to offer and sell securities through crowdfunding transactions that...more

Glossary of Important Securities Regulation Terms and Definitions

Adler Pollock & Sheehan P.C. on 8/20/2015

This Glossary is designed to provide law students taking Securities Regulation with a tool that will assist them in learning the basic language of securities law and achieve a working knowledge of the fundamental principles...more

SEC Regulations on Investment Securities Crowdfunding

Blank Rome LLP on 7/17/2015

Crowdfunding has created a revolution in the raising of funds for startup companies and for other projects, including both for-profit and not-for-profit projects. Crowdfunding is a process by which a company or project can...more

Crowdfunding: A New Way for Montana Companies to Raise Money

Dorsey & Whitney LLP on 5/20/2015

A new exemption passed in the Montana 2015 legislative session will allow Montana companies to use crowdfunding to offer and sell securities in Montana beginning July 1, 2015. This exemption is subject to various limitations...more

Crowdfunding Gets Local: What Entrepreneurs and Start-Ups Need to Know to Capitalize on Exemptions for Intrastate Crowdfunding in...

Clark Hill PLC on 4/21/2015

Many entrepreneurs and start-up companies are looking for innovative ways to raise money without the red tape of the securities laws. Crowdfunding is often touted as the solution to this dilemma. In its simplest terms,...more

SEC Denies No-Action Request for “Publisher Exclusion” for Recommendations of Crowdfunded Investments

Stinson - Corporate & Securities Law Blog on 2/5/2015

The SEC denied a no-action request that was submitted by Jonathon Hendricks. The no-action request inquired about a Wyoming based business that would make available a list of securities from a loan crowdfunding site that...more

Massachusetts Adopts Intrastate Crowdfunding Rules, Effective Immediately

Mintz - Securities & Capital Markets... on 1/27/2015

The Massachusetts Securities Division has recently joined a number of other states in adopting a “crowdfunding” exemption from securities registration requirements for certain offerings made within the Commonwealth, with the...more

Federal Crowdfunding Efforts Stall While Tennessee Prepares for Takeoff

Baker Donelson on 1/5/2015

On January 1, 2015, pursuant to the Invest Tennessee Exemption (ITE), crowdfunding in Tennessee became legal, granting Tennessee-based companies and investors increased access to capital and broadened opportunities to invest....more

Global Crowdfunding Site Consents to SEC Censure

Katten Muchin Rosenman LLP on 12/3/2014

Last week, the Securities and Exchange Commission censured Eureeca Capital SPC, an online, securities-based crowdfunding site incorporated in the Cayman Islands, for failing to implement procedures “reasonably designed” to...more

Texas Adopts Intrastate Crowdfunding Exemption

Jackson Walker on 10/27/2014

On October 22, 2014, the Texas State Securities Board (the "TSSB") voted to formally adopt its proposed Rule 139.25, which provides an exemption from registration for intrastate securities offerings employing a limited...more

Condo Hotel Branding: Benefits and New Risks with Rule 506(c) - Condo Hotel Projects Sold as Exempt Securities Require Informed...

Holland & Knight LLP on 8/12/2014

Condominium hotels are a subject of renewed interest, buoyed by the rising tide for real estate generally. These projects are also encouraged by favorable trends for financing under the SEC's new Rule 506(c) that allows...more

Crowdfunding: It’s Coming to Texas

Winstead PC on 5/14/2014

In late April, the Texas Securities Board issued proposed regulations that would allow crowdfunding in intrastate transactions in Texas. The word on the street is that the proposed regulations will become final in August...more

27 Results

View per page

Page: of 2

Crowdfunding › Securities › Securities and Exchange Commission (SEC)

"My best business intelligence, in one easy email…"