Notes of Note from John F. Ince

More wonderful news!  As part of the American Jobs Act introduced by President Obama earlier today, the White House announced that it will work with the SEC on a crowdfunding exemption.  Heres how the White House Office of Science and Technology explain it on their website and link to IndieGoGo and Kickstarter projects as examples:As part of the President’s Startup America initiative, the Administration will work to unlock this capital through smart regulatory changes that are consistent with investor protection.  This means reducing the disproportionately high costs that smaller companies face when going public, as well as raising the cap on “mini” public offerings Regulation A from $5 million to $50 million.  It also means responsibly allowing startups to raise money through “crowdfunding” – gathering many small-dollar investments that add up to as much as $1 million.  Right now, entrepreneurs like these bakers and these gadget-makers are already using crowdfunding platforms to raise hundreds of thousands of dollars in pure donations – imagine the possibilities if these small-dollar donors became investors with a stake in the venture.In a conference call with the press immediately after Obamas address, U.S. Chief Technology Officer Aneesh Chopra and Office of Science and Technology Policy Deputy Director Tom Kalil explained that they advocate an exemption, or at least a streamlined and less-expensive registration process, for public securities offerings of $1 million or less, with individual investment capped at $10K.  They also said that they believe the SEC has the authority to make this regulatory change, no legislation required.  Agreed– IANAL, but the Securities Act seems pretty clear about the SECs having the authority to write its own exemptions.

via White House to work for 10K/1M crowdfunding exemption – Change Crowdfunding Law.

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