The National Crowdfunding Association (NLCFA), welcomed the unanimous vote by The Securities and Exchange Commission to issue proposed rules for Investment Crowdfunding under Title III of the JOBS Act.
As Commissioner Daniel M. Gallagher stated at the meeting today,
“In Title III of the JOBS Act, Congress recognized the potential of the Internet to facilitate capital formation for very small companies at a critical stage of their growth.” The NLCFA agrees with Commissioner Gallagher when he goes on to say he is “glad that the President and Congress have forced the Commission to focus on small businesses, as they are the engine of growth for our economy.”
“We are pleased that the SEC has given the industry a framework from which to build on,” said Howard Landers, Director of Regulatory Affairs for the NLCFA and Co-CEO of eBarnRaiser, LLC a funding portal developer. “The industry will now study the proposed rules and engage with the regulators to ensure that investment crowdfunding in the United States is efficient, effective, and aids in capital creation while taking investor protection into account.” Mr. Landers added, “The NLCFA looks forward to working with all regulatory bodies; the SEC, FINRA, and members of the North American Securities Administrators Association (NASAA) to help create the investment crowdfunding marketplace, and to give the industry participants a voice through the NLCFA.”
The NLCFA will be reviewing the 585 pages of proposed rules along with the 295 questions in the release, and issue a comprehensive response to the SEC, thus providing a voice for the small business entrepreneurs and those investors who look forward to supporting them.
“That wind you felt today was the industry finally exhaling,” said David Marlett, Executive Director of the NLCFA. “It has been long anticipated.” He added, “We have a top notch regulatory team that crafted one of the definitive white papers during the first round of comments last year. I am looking forward to their analysis of these proposed rules.”