Intrastate crowdfunding is poised to take a giant leap forward next week when the S.E.C give a thumbs up—or down—to important changes proposed to two key exemptions that underlie all state-based crowdfunding activity.
The Commission will meet on Wednesday morning to consider whether to adopt rule amendments related to Securities Act Rules 147 and 504 to facilitate intrastate and regional securities offerings, the agency announced in a notice. Chief among those amendments is a proposal to allow local businesses to widely advertise their securities offerings without worrying about reaching out-of-state residents, as long as they allow only in-state residents to invest.
The current ban on such “general solicitation” is considered impractical in the digital age and has effectively killed marketing on web sites and social media—and even old-school radio and newspapers. As a result, small businesses and crowdfunding platforms conducting intrastate offerings have had to devise clunky workarounds or erect firewalls to prevent non-state residents from viewing their offerings.[…]
The full and original article can be viewed on Locavesting.com
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