Crowdfunding due diligence platform Crowdcheck has scheduled a gathering in Washington DC to discuss the possible risks to securities Crowdfunding. The event is featuring keynote speaker US Senator Mark Warner (D – Virginia). Entitled Fraud and Red Tape: Risks to the Potential of Securities Crowdfunding will also include two panel discussions bringing together many of the Crowdfunding leaders.
The two panels will approach the topic by first “Defining the Threat” and then completing the circle by reviewing “Response without Overreach”.
While there have been no indications of equity Crowdfunding fraud to date in any of the global markets where Crowdfunding is currently legal, industry advocates understand they must be ahead of the potential challenges once equity Crowdfunding for non accredited investors is finally allowed in the United States.
While Crowdfunding was legalized in 2012 by President Obama signing the Jobs Act into law just over one year ago, the Securities and Exchange Commission has not released their formal requirements on regulating this new form of capital formation. The SEC has been tasked with a balancing act of facilitating Crowdfunding – which will be a boon for many small businesses in need of capital – while recognizing the ongoing risks associated with any type of investments.
The event will be held next Monday, April 8 at 2pm at the Hyatt Regency on Capital Hill.