Regulation A+ SEC Developments — Recent SEC Enforcement Proceedings And SEC Comment Letter Trends

In March 2015, the Securities and Exchange Commission (SEC) adopted amendments to Regulation A, which expanded the Regulation A exemption from the Securities Act of 1933 (the Securities Act) registration for public offerings up to $50 million in any 12-month period (also known as Regulation A+ or Reg A+), as mandated by Title IV of the Jumpstart Our Business Startups Act. The Reg A+ offering limit was raised by the SEC to $75 million in any 12-month period in November 2020. Offerings under Reg A+ are also subject to reduced disclosure requirements and less onerous ongoing reporting requirements as compared to the full Securities Exchange Act of 1934 (the Exchange Act) requirements. Reg A+ was adopted to facilitate capital raising by smaller companies while still providing investor protection. In the SEC's Report to Congress on Regulation A / Regulation D Performance, dated August 2020, the SEC noted that from June 19, 2015, through December 31, 2019, the SEC qualified