Crowdfunding websites have grown rapidly as a way to raise money for creative ventures… everything from movies to scientific research to clever inventions. You might have heard of Kickstarter, Indiegogo or Rockethub. It would be just a small leap to use those same platforms to sell shares in a startup. That’s illegal right now, but maybe not for long. Correspondent Tom Banse reports.
… Congress has already directed federal regulators to legalize equity crowdfunding. But the federal rulemaking at the Securities and Exchange Commission has fallen way behind schedule. That’s partly why Habib wants to proceed with a state exemption to the usual hoops and hurdles for selling shares. Bill Beatty is all for moving ahead with caution. He’s in charge of securities oversight at the state level at Washington’s Department of Financial Institutions.
Beatty: “When people complain about the amount of time it takes to implement and other things, well this is not a small change. This is a BIG change.”