TL;DR - Crowdfunding rules set by the SEC
Helpfulness - 4
Tags - crowdfunding, crowdfunding rules and restrictions, Regulation Crowdfunding
- What are the rules for crowdfunding in the U.S.?
- The rules for crowdfunding set by the SEC (Regulation Crowdfunding):
- require all transactions to take place online through an SEC-registered intermediary, either a broker-dealer or a funding portal
- permit a company to raise a maximum of $1,070,000 through crowdfunding offerings in a 12-month period
- limit the amount individual investors can invest across all crowdfunding offerings in a 12-month period and
- require disclosure of information in filings with the SEC and to investors and the intermediary facilitating the offering
- Securities purchased in a crowdfunding transaction generally cannot be resold for one year.
Follow up links:
- Regulation Crowdfunding (more details of the rules), https://www.ecfr.gov/cgi-bin/text-idx?SID=34b3261feed0101e23a49dd3ae21f087&mc=true&tpl=/ecfrbrowse/Title17/17cfr227_main_02.tpl