SEC to propose monumental crowdfunding rules on Wednesday SEC to propose monumental crowdfunding rules on Wednesday
By J.D. HarrisonIt was supposed to take 270 days. Instead, it has taken about twice that long.
On Wednesday, though, federal regulators will come one step closer to allowing people to purchase equity in start-ups through new online “crowdfunding” marketplaces.
The Securities and Exchange Commission plans to formally propose rules on Wednesday authorizing companies to widely sell securities through the online portals, the agency announced late Monday. Currently, firms can offer equity crowdfunding deals only to accredited investors.
Once the proposed rules are issued, the five-member board plans to vote whether to move forward on them. If approved, the rules will enter into what is expected to be a lengthy comment period before they would take effect.
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