In the spring of 2012, President Obama passed an act that will drastically alter the landscape of crowdfunding platforms. Until April 5, 2012, a small pool of existing crowdfunding sites were only permitted to operate on a reward or donation basis, essentially offering a product, discount, or enticement in exchange for monetary funding. With the launch of the JOBS Act, short for Jumpstart Our Business Startups, the ability for the general public to receive company equity in exchange for funding is now a possibility.
As of today, the Securities Act of 1933 states that entities can not offer or sell securities to the public unless (a) the offering is registered with the SEC, or (b) there is an available exemption from registration. Unfortunately, the crowdfunding exemption introduced under the tittle III of the JOBS Act under Section 4(a)(6) of the Securities Act won’t be available until the SEC issues its regulations.
Rad More at Forbes