Prevent strictly regulated cryptocurrency exchanges from operating as speculative platforms
for unaccredited investors.
Prevent regulated exchanges from operating as speculative platforms
for unaccredited investors.
Do a Regulation Crowdfunding offering
for the unaccredited investors and at the same time a Title II offering, which allows for general solicitation of accredited investors and does not have the $ 1 million cap.
The lift on the general solicitation ban is separate from the measure that would make equity crowdfunding legal
for unaccredited investors.
Not exact matches
At issue
for the startup was the fact that it allows
unaccredited investors to lend money, which could have qualified the company as a securities dealer.
A bigger potential change
for the industry is likely to be the entrance of
unaccredited investors into the market.
That particular provision of the legislation would allow businesses to give away pieces of their company to
unaccredited investors in exchange
for cash, or equity crowdfunding.
Because
unaccredited investors are likely less aware of the risks associated with investing in startups, the potential
for fraud and loss is that much greater.
In the Netherlands, equity crowdfunding from
unaccredited investors has been legal
for the better part of three years.
In March 2015, the Securities and Exchange Commission (SEC) released final Regulation A + rules under Title IV of the JOBS Act, paving the way
for companies like TTS Academy to raise capital from both accredited and
unaccredited investors.
In a stunning development earlier today, the SEC released the final Regulation A + equity crowdfunding rules under Title IV of the JOBS Act that pre-empts state law, paving the way
for $ 50M
unaccredited investor equity crowdfunding.
As such, most 506 (b) offerings are only sold to accredited
investors (even though the Rule allows
for the sale of up to 35 non-accredited
investors), as the sale to any
unaccredited investors requires significantly heightened disclosure to such
investors, which can be costly and burdensome to provide, and may increase the exposure of an issuer to liability under federal and state securities acts.
To be clear, these platforms are, at least
for now, only serving accredited
investors; the
unaccredited are barred from investing until the SEC finalizes JOBS Act Title III regulations.
We help you navigate and optimize
for including the maximum number of everyday people:
unaccredited, unsophisticated (those are both legal terms)
investors.
With the new regulations Reg A + and Title III just starting to affect the
investor base in approving
unaccredited investors in the real estate market, the industry is in
for a huge overhaul.
Since 2010, we've used Regulation A to allow more than 1,200
unaccredited investors to participate in private real estate offerings — many
for the first time ever.