This was the scene a year ago, when President Barack Obama signed the JOBS Act, which legalized the use of crowdfunding for equity investments. The SEC, however, still has not issued regulations to make this new way of raising capital a reality.
If you’re hoping to raise capital for your business by selling small stakes to investors over the Internet, you better be patient — there’s no telling when this form of crowdfunding will become a reality.
Congress legalized the use of crowdfunding for equity investments a year ago, when it passed the Jumpstart Our Business Startups Act. But the Securities and Exchange Commission still has not issued the regulations needed to implement the law.
When will it do so?
“As soon as we can,” said David Blass, chief counsel for the SEC’s division of trading and markets.
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