Despite news that the chair of the SEC will step down next month, CFIRA members remain optimistic that the SEC will formulate rules to govern equity crowdfunding under the JOBS Act by the end of 2013. Board members of the Crowdfund Intermediary Regulatory Advocates (CFIRA) made the comments during a webinar sponsored today on BrightTalk entitled “What You Need to Know Regarding Jobs Act Implementation.”
On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act (the JOBS Act), which among other things, allows small businesses to raise up to $ 1 million per year from small investors through online crowd funding portals. The JOBS Act requires the Securities and Exchange Commission to implement rules to govern equity crowdfunding before such investing can take place. The statute set a deadline for the end of 2012 for the rules, but experts believe the rules realistically will roll out toward the end of 2013. CFIRA provides an industry input to policy makers such as the SEC and FINRA regarding crowdfund investing.