Dave Michaels of Bloomberg Businessweek posted an article yesterday citing information from two sources that said the SEC commissioners could vote by 10/23 on a proposed rule related to Equity Crowdfunding as put forth in Title III of the JOBS Act.
While the opening to the article is unclear, it seems like the ruling could in a most-limited fashion allow for unaccredited investors to self-certify through a representation and warranty that they fall within a certain investment cap bracket, as defined under the law. For example, the article indicates an imminent rule to allow the unaccredited investor to say they make $102k/year and be allowed to invest 10% of their income, without having to have a third-party verification or other verification standard apply. This is a common sense proposal that would make onboarding investors to equity crowdfunding portals much easier.
The remainder of the article indicates a potentially broader imminent vote on rules, to include rulings on other important issues related to equity crowdfunding under Title III of the JOBS Act. While the article leans in this direction, the reporter’s sources apparently don’t hint at this broader rulemaking.
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