Final Crowdfunding Rules Approved By The SEC

On October 30, 2015, the Securities and Exchange Commission (SEC) adopted final rules to permit companies to offer and sell securities to a wide range of investors through the use of the Internet without registration under the federal securities laws – a method of capital raising commonly known as "crowdfunding." The federal crowdfunding exemption was originally authorized under Title III of the Jumpstart Our Business Startups, or "JOBS," Act of 2012, subject to the adoption of final implementing regulations by the SEC. After more than two years, the SEC has, at long last, adopted the final rules to permit crowdfunding securities offerings.

The final rules, styled "Regulation Crowdfunding," enable individuals to purchase securities in crowdfunding offerings subject to certain limits, require companies to disclose certain information about their business and securities offering, and create a regulatory framework for the intermediaries facilitating crowdfunding