Today, NBC Bay Area featured CEO Freeman White in an article discussing SEC regulations and the future of online advertising for equity crowdfunding. The article addresses issues of the JOBS Act, namely, “How much online advertising is too much?” The new model the SEC is considering would allow people to use funding portals rather than the more-heavily regulated broker-dealers to invest in start-up businesses. This would allow the public to invest in new companies, rather than restricting investment access to only those that meet certain income or net worth thresholds. Broker-dealers and funding portals are restricted to giving investment advice, and the question at hand regards whether or not advertising new investments would constitute advice and whether or not allowing portals to advertise would harm the public.
CEO Freeman White, who is a member of the Crowdfund Intermediary Regulatory Advocates, works closely with the SEC to devise limits that will make equity crowdfunding possible without making the industry vulnerable to fraud. In this article, he speaks about the concerns surrounding online advertising and the concern that it will be misinterpreted by the public. Launcht is pleased to be involved in the continuing conversations around this topic and is excited to continue to move towards workable solutions.