The Commissioners of the SEC voted unanimously 5-0 yesterday to propose rules for equity crowdfunding under Title III of the JOBS Act. Here at Launcht this day has been a long time coming. We started lobbying for the equity crowdfunding act before it was signed into law by President Obama on April 5th, 2012. After, we helped found–and continue to be members of–CFIRA, which is the industry group that has worked with the SEC through their rule making period.
So, what is next? The SEC has laid out a 90 day comment period on their 585 page document and have outlined 295 questions that they are looking for comment on specifically. We expect that due to the length and complexity of the document this 90 day period will be extended. Also, Yesterday, FINRA also released their 50-page regulation document, which lays the ground work for the rules and regulations that will govern broker/dealer and non broker/dealer portals, and brings the total documentation to a total of 635 pages.
In short, there is a tremendous amount to do, but we are very excited that all the work of our team and countless others has passed this important milestone. The next step is to sit down, sharpen our pencils, and read through the extensive documentation. Yesterday brought us one step closer to the dream of democratizing access to capital and open equity crowdfunding for all Americans, and now we have the opportunity to continue forging ahead.